THE Independent Telecoms Group (ITG), a telecommunications service company, is to seek share quotations on the London and Dublin stock markets through a placing of new shares. It would be the first company to be listed on the DCM market of the Irish Stock Exchange. The London listing will be on the AIM market.
The placing which would raise £1.7 million would value the company at £7 million. The founding directors, Mr John Nagle, managing director, and Mr Maurice Healy, finance and operations director, are selling 128,291 shares which would raise £200,000.
The new funds would be used to provide additional working capital to pay for developments which include an expansion of its existing payphone management business. ITG said it also intends to evaluate the potential of the British communications market, which it hopes to enter.
The 1.4 million ordinary shares are being placed at 156p (148p sterling) representing a premium of 131p on the shares - in equal proportions by Goodbody Stockbrokers, the DCM sponsor, and Townsley & Co, the AIM nominated broker. Dealing are expected to commence on May 2nd.
The placing would represent 31 per cent of the enlarged share capital. Mr Nagle would have 43.3 per cent - valued at £3.0 million - while Mr Healy would have 22.7 per cent - valued at £1.58 million. The chairman, Mr Paschal Taggart, a partner with Cooney Taggart, would be taking up 16,025 shares in the placing, representing a 0.36 per cent stake.
Both Mr Nagle and Mr Healy have service agreements which entitle them to an annual salary of £85,000 each with bonuses which are linked to the attainment of certain profit targets up to a maximum of 50 per cent. There are also the usual benefits. Mr Taggart is to be paid an annual fee of £15,000.
ITG, in Sandyford, Co Dublin was founded in 1989 as a third party telephone maintenance company, offering customers the option of an alternative maintenance service from original equipment suppliers. It has made a number of acquisitions, including Lake Electronics in 1992, Allied Telephones in 1993, DDT Maintenance in 1995 and established Independent Payphone Management last year. It now employs 98 people.
ITG provides a communications package, including installation and maintenance of telephone and computer networks. Its customers are drawn from areas in industry, banking, insurance, distribution and government departments. One of its major projects was the installation and training for 2,000 new Spectra III lottery terminals for the National Lottery.
Reflecting organic growth and acquisitions turnover rose from £1.45 million in 1993/4 to £3.25 million in 1995/6. It is projecting this to rise to £5.73 million in the year to April 1997. Profits have also grown but there was dip from £126,011 to £77,494 in 1995/6 due to rationalisation and relocation costs which amounted to £105,898. Profits are forecast to rise to £489,090 this year.
At the placing price this would put earnings per share at 10.8p. The p/e comes to 14.5.
Mr Nagle said the flotation is the next logical step in the development of the company. "We are experiencing strong demand for our services and have identified a number of significant new opportunities. We are involved in one of the fastest growing business sectors, telecommunications, and we plan to step up our investment to place us in a better position to take advantage of this".
