11/8/1999


Text 100 Announces Move to LSE

London-November 8, 1999 -- Text 100 Group plc, the leading international technology PR company, announces its intention to seek a full listing on the London Stock Exchange by means of a placing. The placing is scheduled to take place in December 1999. The company has been quoted on OFEX since 1997.

It is expected that the flotation on the London Stock Exchange will involve the issue of new shares and the sale of some existing shares by the management of Text 100.

The Directors of Text 100 believe that a listing on the London Stock Exchange will enhance the stature and market profile of Text 100 and will promote increased awareness of the services and capabilities of the Group, particularly in international markets. The new capital being raised will both strengthen the Group's balance sheet and assist in the financing of future development, which it is intended to pursue through organic growth in the UK and overseas.

The increased standing as a result of the listing, together with the enhancement of share option plans, will also enable the Group to attract and retain high quality employees.

ARM is acting as Sponsor and Financial Adviser to Text 100 and Sutherlands is acting as Stockbroker.

Background to Text 100 Group

Text 100 Group plc, founded in 1981, is a rapidly expanding international Public Relations group. It is the largest specialist Information Technology PR business in the UK with subsidiaries established in Europe, the USA, Africa, Asia and Asia-Pacific.

The Group's operations are expanding both nationally and internationally in order to serve a client base which is increasingly operating on a global scale within one of the world's fastest growing industries.

The skills and knowledge developed in the IT market are enabling the Group to expand its horizons beyond its original client base. As IT has become pervasive in almost all industries, particularly with the advent of e-commerce, the Group is increasingly addressing a variety of different markets through the creation of new subsidiary companies which are operating independently with separate brand names.

Text 100 Group's clients currently number over 150 and include many of the most well known names in the IT industry, such as Microsoft, BT, Compaq, Orange, Xerox and Gateway. Among the fastest growing Internet-related companies, the Group has clients such as Amazon.com, Netscape Online, InfoSpace.com, Lycos and Virgin Biznet.

The Group now employs nearly 400 people and has 30 offices situated in 15 countries around the world.

Growth Strategy

Text 100 Group operates as a holding company with six separate brands. At present, three of these brands, Text 100, AUGUST.ONE COMMUNICATIONS and latterly Bite Communications are international brands, while Joe Public Relations, EVUS, extra PR and Brand X still operate at a national level. For the future, the Group intends to drive its international brands into as many of the world's significant technology markets as possible. At the same time, it will continue to establish new national brands wherever existing Group operations reach a size where talented teams can be made available without unduly restricting the operations from which they have come. Finally, and where appropriate, it will encourage its most successful national brands to commence international operations. The board regards this as an effective way to grow global market share, whilst at the same time building the strength and stability that comes from a large number of discrete profit centres worldwide.

Financials

The Group has consistently grown its profits throughout its 18-year history. In recent years it has expanded rapidly particularly into international markets and start-up costs have been incurred, which has meant that sales have increased at a greater rate than profit. Despite the substantial investment which has been made in supporting the Group's growth no additional capital has been raised.

Results for 1998/9

In the year ended 31 July 1999 Text 100's turnover increased from £16.03 million to £22.8 million, with PBT up 26% from £1.35 million to £1.7 million. Earnings per share were up 9% to 4.5p with the dividend up 14% to 1.6p. During the year new Text 100 offices were opened in Tokyo and Singapore and further independently branded national subsidiaries were established in the UK and Germany. AUGUST.ONE COMMUNICATIONS was established as an international brand at the end of the year to service a group of clients including Microsoft. The investment in start-ups was more than offset by existing operations. There were especially strong results from the USA and Germany and the UK's independently branded subsidiaries also performed well.

The Board believes that as a result of this expansion strategy, there are substantial opportunities for further growth.

The Group has made a good start to the current year with some quite substantial new business wins. The first half will include office relocations in Seattle, San Francisco, Boston, Rochester, Sweden, Spain and New Delhi. The AUGUST.ONE brand is being launched in a number of territories. Bite has opened a new office in San Francisco and Text 100 has recently opened in Hong Kong.

Non-executive directors

The Board has appointed John Rasor as a non-executive director. John is a US citizen and former head of worldwide public relations at Xerox Corporation. He joins Text 100's two other non-executive directors - Ian Taylor, MP and Brendan Magee. Tom Lewis, Chairman of Text 100, commented: "John's experience of PR at a global level will be of immense value to the Group."

Group Strengths

The Directors of Text 100 believe that the key strengths of the group are:

Tom Lewis, Chairman of Text 100, said:

"Our move to the main market after a successful two and a half years on OFEX should raise our profile, improve the liquidity of our shares and support our organic growth strategy. We believe we have established a good platform internationally, which should grow significantly over the next few years as a result of the continuing predicted growth in the technology sector.

Commenting on Text 100's 1999 results, Mr Lewis added:

"We have made good progress in a year of further international expansion which has reinforced our position as a leading international specialist technology pr business. Over the last few years we have incurred some significant start-up costs, while continuing to increase our profitability significantly. We are now well placed to build our business through our international network and our range of established brands."

Press inquiries:

Text 100
Tel: 0181 242 4100
Tom Lewis, Executive Chairman


ARM Corporate Finance Limited
Tel: 0171 512 0191
Alan MacKenzie
Jim McGeever


Hogarth Partnership
Tel: 0171 357 9477
Nick Denton
Chris Matthews


No offer or invitation to purchase shares is being made now, nor are any such offers being solicited. This announcement, for which the directors of Text 100 are solely responsible, has been approved by ARM Corporate Finance Limited, who are regulated by the Securities and Futures Authority Limited, solely for the purpose of Section 57 of the Financial Services Act 1986. ARM Corporate Finance is acting for Text 100 and no one else in connection with the proposed placing and will not be responsible to any person other than Text 100 for providing protections afforded to customers of ARM or for providing advice in relation to the flotation.

The securities to be offered in connection with the proposed flotation have not been and will not be registered under the US Securities Act of 1993 (as amended) and will not be offered or sold within the US or to, or for the account or benefit of, US persons.

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