Porta Communications PLC, the international marketing and communications group, today announces the acquisition of PPS Group Limited for a total consideration of £6,161,270. PPS is a leading independent consultancy specialising in reputation management, community engagement and political consensus building, advising on projects such as complex property, infrastructure and energy developments.
The business will operate as Newgate PPS and will become Porta’s public affairs arm, managed by Stephen Byfield. The Group’s existing, smaller public affairs division within Newgate Communications will be integrated into Newgate PPS. PPS employs 45 staff operating from offices in London, Manchester, Bristol, Edinburgh, Aberdeen and Cardiff. In the year ended 30 April 2014, PPS’s fee income was £4,647,299 with profits before tax of £706,277; the balance sheet showed current assets of £2.67m and net current assets of £1.6m. PPS has cash at bank on completion of £1.6m. The total consideration comprises £2,930,635 in cash and £850,000 in loan notes with the balance of £2,380,635 satisfied by the issue of 23,806,350 ordinary £0.10 Porta shares at 10p each. The loan notes totaling £0.85m nominal value carry a coupon of 6 per cent and are redeemable 12 months from date of issue for cash. The consideration shares are subject to a lock-in agreement which provides for a 24 months lock-in period with a further 12 months orderly market period.
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