MKM Mkm Group

RNS Number:4213F
MKM Group PLC
09 October 2007

MKM.L
9 October 2007

                                 MKM GROUP PLC

                             ("MKM" or "the Group")

                        Acquisition of Promodus Limited

MKM, the specialist marketing services company, is pleased to announce the
acquisition of the entire issued share capital of Promodus Limited ("Promodus"),
the London based marketing and communications consultancy, for a total
consideration of up to #650,000.

An initial consideration of #400,000 in total is payable on completion of the
acquisition.  This will be satisfied by the issue of 2,660,332 ordinary shares
of 0.5p each in the capital of MKM (the "Consideration Shares") and a cash
payment of #120,000 (subject to adjustment dependent on the Net Asset value of
Promodus at completion). Deferred consideration of up to #125,000 is payable
either in cash or by the issue of ordinary shares of 0.5p each in the capital of
MKM ("Ordinary Shares") (at the discretion of MKM) on each of 5 April 2008 and 5
April 2009.  Payment of the deferred consideration is subject to the achievement
of agreed conditions relating to the future financial performance of Promodus.

Based in West London and established in 2004, Promodus specialises in marketing
consultancy and the delivery of marketing solutions, and has particular
expertise in the financial services, B2B and technology sectors. The founders of
the business have extensive experience of developing marketing programmes for
major blue chip brands on an international basis and Promodus' clients include
AXA Insurance, a leading UK underwriter of personal and commercial products,
Your Move, the estate agency website, Parcelforce, the express parcels business
of Royal Mail Group, GSM Association, the global trade association for GSM
mobile phone operators and Arval, a leading fleet and fuel management company in
Europe.

For the year ended 31 December 2006, Promodus reported sales of #943,430 and an
operating profit after adjusting for non-recurring items of #68,000.  As at 31
December 2006, the net asset value of Promodus was #97,205.

The Directors of MKM believe that Promodus represents an excellent strategic fit
with its core business, MKM Concepts Limited ("MKM Concepts"). Promodus broadens
the range of services MKM Concepts can offer and adds new and substantial
expertise. In particular, Promodus has considerable experience in the provision
of consultancy services. The vendors of Promodus will remain with the Group and
the directors believe that they will further strengthen MKM Concepts' senior
management team, with Simon Ward, managing director of Promodus, expected to
assist significantly in the development of MKM Concepts.

Application will be made for the Consideration Shares to be admitted to trading
on AIM and dealings are expected to commence on 15 October 2007 ("Admission").
The Consideration Shares will rank pari passu with the existing Ordinary Shares
in issue and bring the number of Ordinary Shares in issue to 73,071,544.

The vendors of Promodus have agreed not to dispose of any Consideration Shares
for a period of 12 months following Admission and only to dispose of such
Consideration Shares through the Group's broker for a period of 12 months
thereafter.  Any Ordinary Shares issued as part of the deferred consideration
will be subject to orderly market arrangements only.

Commenting on the acquisition, Andrew Johnson, Executive Chairman of MKM, said,

"The Promodus team have built up a really good business over the last few years
and established long term relationships with their key clients. We are confident
that they can continue to develop the Promodus business while contributing
significantly to the development of the Group. There are significant
opportunities for cross selling and business development.

The team brings a wealth of experience in the marketing services sector and I am
confident that its strategic and solutions development skills will prove
invaluable in driving the growth of our MKM Concepts business."

Simon Ward, Managing Director of Promodus, commented,

"We are delighted to be joining the team at MKM. Having built up our business
over the past three years, we believe that MKM offers Promodus the opportunity
to enter a new and exciting growth phase, broadening the product range and
resources which we can offer to our clients.

I look forward to working together with the MKM team and achieving our growth
objectives."

Enquiries:

MKM Group Plc (www.mkmgroupplc.com)                  T:  0161 877 1112
Andrew Johnson, Executive Chairman
Matthew Toynton, Finance Director

WH Ireland Limited                                   T: 0161 832 2174
David Youngman

Biddicks                                             T: 020 7448 1000
Katie Tzouliadis
Sophie Lane

Promodus                                             T: 020  8995 1389
Lucy Thomas



About MKM Group plc

Website: mkmgroupplc.com

MKM has the stated strategy of building a substantial specialist marketing
services group.   The Group currently provides specialist loyalty and sales
promotion programmes for major brands and has developed a reputation for
creating market leading solutions. The Directors see a considerable opportunity
to broaden the range of the Group's services and to accelerate the Group's
growth in the UK and in select overseas markets.

Established in 1989, MKM plans, creates and delivers innovative loyalty and
sales promotion programmes for clients including HSBC, Lufthansa and Procter &
Gamble. Following the acquisition in August 2007 of Australasian marketing
agency, The Leapfrog Group, MKM now operates from five offices across the UK,
Australia and New Zealand and employs over 90 staff.



About Promodus

Website; www.promodus.co.uk



Founded in late 2004, Promodus is a growing, integrated marketing agency based
in west London.  With a multi-disciplined approach and particular specialism in
financial services, B2B and technology, Promodus has readily established a
blue-chip client list, including AXA Insurance, Your Move, Parcelforce, Wesleyan
Assurance and GSM Association.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

ACQILFVEISLAIID

Mkm Group (LSE:MKM)
Historical Stock Chart
From Apr 2024 to May 2024

Mkm Group (LSE:MKM)
Historical Stock Chart
From May 2023 to May 2024