Acquisition/Trading Update

30 Jun 2005 07:02

W.H. Ireland Group PLC30 June 2005 30 June 2005 W. H. IRELAND GROUP plc ACQUISITION OF CONTROLLING INTEREST IN D. J. CARMICHAEL PTY LIMITED and TRADING UPDATE Further to the announcement of 25 May 2005, the board of W. H. Ireland Group plc("WH Ireland") is pleased to announce that talks with the shareholders of D.J.Carmichael Pty Limited ("DJC"), the Perth-based stockbroker, have beensuccessfully concluded. A newly-formed Australian company, WHI Australia Pty Limited ("WHIA"), hascontracted to acquire 99.3% of the issued share capital of DJC and, under DJC'sconstitution, is compulsorily acquiring the balance. On completion of thetransaction (which is anticipated to be on or around 1 July 2005) WH Irelandwill own 51% of WHIA's issued share capital, which it will acquire forA$2,110,250 in cash and by the issue of 250,852 new shares in WH Ireland, withthe balance being owned by the existing shareholders of DJC. There will be a put and call option over a further 25% of the equity of WHIA,and a call option in favour of WH Ireland over the remaining 25%, enabling WHIreland to increase its investment in the Australian business as appropriate inthe future. Four directors of WH Ireland will be appointed as directors of WHIA, one ofwhom, Laurie Beevers (the chief executive of WH Ireland), will be the chairman.DJC will continue to be operated by its Australian board, with Rod Beetonremaining as DJC's managing director. Information on DJC DJC is one of the oldest established and leading stockbrokers in Perth, WesternAustralia. It currently has 68 employees. In the year ended 30 June 2004, DJC'sturnover was A$10.7 million and net profit before tax was A$468,000. Laurie Beevers said, "I am truly delighted to be joining forces with our friendsat DJC. This merger brings together the considerable expertise both companieshave in covering, amongst other things, resource-based investments, both inresearch and corporate finance. We believe that this will create interestingopportunities for both firms in the UK and Australia." Rod Beeton said, "There are strong synergistic benefits to be gained between ourtwo businesses which will have a positive bottom line effect and position us forfurther growth. The opportunity is an exciting one, particularly on a corporateadvisory level, for us and for our clients who will gain a much enhancedplatform." Trading Update The interim results of the Company for the six months ended 30 May 2005 will beannounced on or about 29 July 2005. The board of W.H.Ireland is pleased toconfirm that, as reported at the AGM in April, turnover has been maintained at arate in excess of 30% above the level of the previous year. Pre-tax profits willbe significantly higher than those for the same period last year. For further information, please contact: W. H. Ireland Group plcLaurie Beevers T: 0161 819 8724Richard Lee T: 0161 819 8876 BiddicksZoe Biddick T: 020 7448 1000 D.J. Carmichael Pty Limited T: +618 9263 5227Rod Beeton This information is provided by RNS The company news service from the London Stock Exchange