News & Press
Acquisition of web solutions agency
7th November 2007
Hasgrove (AIM: HGV, ‘Hasgrove’, “the Group”), the pan European marketing and communications group, has acquired part of the trade and assets of Amaze Ltd (“Amaze”), a web solutions agency, for a total consideration of £600,000 in cash from the Administrators. Amaze was put into administration on 5 November 2007. The Board expects that the acquisition will be earnings enhancing in the next financial year.
Amaze provides both international and domestic clients with a wide range of marketing solutions across all digital platforms, including the delivery of web technology solutions. Amaze has operations in Cheshire and London.
The acquisition will significantly enhance and accelerate the digital marketing capability of Hasgrove, by capitalising on the combined forces of Amaze and Pavilion, the digital marketing agency, acquired by the Group on 27 September 2007.
Both agencies initially will continue to operate independently. However, the Directors expect that in due course there will be many synergies because of the complementary fit of the businesses. These include:
- Pavilion has a core competency in digital marketing, including a media department that handles online display, search and analytics. Amaze’s core competency is in complex web-based technology development. Together these present a powerful service offering.
- Amaze has solid experience in the automotive, professional services and public sectors. Pavilion’s strengths are in the retail, leisure and business technology sectors. There is very little client type overlap.
- Amaze has several clients in Brussels, where Pavilion is looking to establish a presence in conjunction with the Group’s strong presence via Interel. Landmarks, which is part of the Interel group, has an important client in common with Amaze.
For the period ending 31 July 2005, the last audited accounts, Amaze’s turnover of £6,443,000 generated an operating profit of £400,000, before exceptional items of £281,000 associated with an office move. The adjusted unaudited management accounts for the years ended 31 July 2006 and 2007 indicate turnover of £6,169,000 and £7,774,000 respectively and operating losses of £1,725,000 and £1,963,000 respectively. Hasgrove expects to refocus the business rapidly and turn it around by building on Amaze’s excellent client portfolio and the related income stream, whilst keeping the cost base in line with the revenues.
Rod Hyde, Hasgrove Chief Executive commented:
“This is an exceptional opportunity for us to advance quickly the development of our digital marketing capabilities, whilst also moving into the area of web solutions. It catapults us into the top 10 in the UK market at least a year ahead of our expectations. Following our acquisition of Pavilion in September, we now have two substantial complementary businesses in the digital marketing space covering a broad range of industry sectors.”
Rod Hyde, Chief Executive 0161 817 4200
Paul Sanders, Group Finance Director
Adrian Duffield/Rozi Morris 020 7457 2020
KBC Peel hunt
Capel Irwin/Richard Newman 020 7418 8900
Note to editors
Hasgrove, incorporated on 1 October 2004, is the holding company for a group of profitable and cash generative companies which provide communication services in public relations, public affairs, graphic design, advertising and online marketing.
Hasgrove was established to capitalise on the evolving world of communications. The Group provides services which encompass multi-channel, cross-disciplinary and cross-border activity. This is being achieved by a combination of organic development and acquisition within the fragmented marketing communications sector.
There are now more than 350 personnel in the Group, serving a broad client base of more than 325 clients, working in a number of well established, profitable and strongly cash generative operating businesses:
- Connectpoint specialises in advertising, public relations, public affairs and digital services.
- The Chase is a leading UK graphic design agency.
- Interel is a leading continental European communications consultancy specialising in corporate communications, European public affairs, Governmental relations and brand marketing communications.
- Cabinet Stewart is a leading EU Public Affairs consultancy based in Brussels.
- Pavilion Communication Services is a digital marketing agency
- Odyssey Interactive is a supplier of intranet solutions.