PRESS RELEASE 28th November 2003
ELECTRIC WORD PLC
Electric Word Acquisition Advances Profits
Electric Word plc, the specialist professional development publisher, today announces the acquisition of Primary File Publishing Ltd (pfp) for a consideration of £1.1m.
Pfp publishes nine loose-leaf files sold by subscription and a range of supporting books and classroom materials for schools - one of Electric Word’s key market sectors. Two of pfp’s most successful titles are the Primary Assembly File, a termly source of stimulating ideas for school assemblies and Primary Leadership, which provides Heads with regular, up-to-date management support.
Electric Word’s Chief Executive Julian Turner commented: “We have been following this business for some time. Pfp fits very closely with our existing subscription titles and conference activity in schools. Their traditional strength in primary schools neatly complements our Optimus newsletters, most of which are aimed at the secondary school market. The pfp titles are also more established and within Electric Word’s publishing infrastructure will be immediately profitable.”
Last year pfp revenues grew to £1.13m but the company slipped into loss after investing in developing new products and a significant increase in its management and staff overhead. Those extra costs have been cut back during the course of 2003 and, under Electric Word’s experienced publishing management, will not need to be replaced.
Chris Kington, Electric Word’s Director for Education Publishing, will be responsible for managing pfp’s stable of established and respected products.
Chris explained: “After a year of energetic organic growth, with seven successful new launches, this acquisition accelerates our growth by bringing in nine new subscription products, many of which are in management or curriculum areas that we had already targeted for strategic development. This opportunity will allow us to make the most of some excellent products through our own marketing operation, which we believe is second to none in this market.”
Pfp is Electric Word’s fourth acquisition since its listing on the AIM market in March 2000. Optimus Publishing Ltd was acquired in May 2000, Lottery Monitor Ltd in July 2000 and the education management list of The Stationery Office in November 2001.
Electric Word also reports that trading has been in line with or ahead of expectation in all markets.
Chief Executive Julian Turner reported:
“It has been a particularly encouraging start to the new school year, with the fourth quarter heading towards being the company’s best ever for new subscription and conference orders from schools, driven largely by the successful launch of two new newsletters, Protecting Children and Emotional Literacy Update, and several new events.”
Ends
Notes to Editor:
Electric Word plc was floated on AIM in March 2000.
The Company operates in three main markets– Sports Health, Education (Optimus Publishing acquired in May 2000) and Public Sector Funding (Lottery Monitor acquired in July 2000).
Website: www.electricwordplc.com
For further press information:
Julian Turner, Chief Executive - Tel 020 7954 3443
Jenny Basham, Capwood Communications - Tel 020 7385 9411