Bilby Plc (Bilby or the Group) Announces its intention to float on AIM
Bilby Plc today announces its intention to seek admission to trading on AIM (Admission). The Group is seeking raise £2.0m to finance the further development and up to £4.5m through the sale of founder shares.
Bilby is a holding company established to provide a platform for strategic acquisitions in the gas heating and general building services industries. Prior to Admission Bilby will acquire P&R Installation Company Limited (P&R) through a share for share exchange as the first operating subsidiary of Bilby.
- The directors believe that there are significant opportunities to expand the Group’s operations through further acquisitions of businesses complimentary to the remainder of the Bilby Group based in London and South East England. The Directors anticipate that a Buy & Build Strategy can deliver further and accelerated growth.
- Bilby is expected to raise up to £6.0 million through a Placing of new ordinary shares being undertaken by Charles Stanley Securities. £2.0 million is raised through the issue of new Bilby shares while founder shareholders are seeking to place up to a further £4.5 million of existing shares.
- The proceeds of the Placing will be applied to:
• provide working capital to fund the continued operations of the Group through a phase of expected rapid growth;
• provide a platform and access to capital should further financing be required for future acquisitions and expansion of the business; and
• provide capital for further investment in the systems, controls and processes across the Group.
- Dealings are expected to commence on AIM on 17 February 2015.
- Charles Stanley Securities is Nominated Adviser, Financial Adviser and Broker to Bilby.
Commenting on the decision to float on AIM, Phil Copolo, Executive Deputy Chairman of Bilby and founder of P&R said:
Admission to AIM will position Bilby to exploit a fast-expanding market that is driven by strict Government regulations. This, combined with our exceptional operational track record, strategic and geographic focus and long-standing customer relationships will ensure Bilby is ideally placed for further strong organic growth. Furthermore, the admission will enable Bilby to grow through a focused buy and build strategy that will help deliver new significant new growth opportunities for the Group.
P&R – Operational and financial track record driven by a focused approach:
- The Group has a clear geographic focus based on London and South East England. The Directors believe that, alongside a strong and experienced management structure, Bilby’s geographic focus and disciplined approach to tendering for new contract work has helped P&R to achieve above average operating margins compared to its publicly quoted peer group.
- An award winning reputation with ongoing and long established customer relationships arising from P&R’s high quality service and management expertise;
- A substantial level of recurring revenue through multiple long term and rolling contracts with local authorities and housing associations;
- A established financial record and yielding:
• For the year ended 31 January 2014 P&R generated revenue of £9.73 million and in the nine months ended 31 October 2014 P&R reported revenues of £8.67 million.
• 2012 - 2014 revenue CAGR of 13.4 per cent;
• Adjusted operating profit margin of 14.2 per cent. for the 9 months ended 31 October 2014;
• The Directors intend that Bilby will pay a divined yield of not less than 3.5% at the Placing Price, the first payment being the interim dividend in respect of the six months ending 30 September 2015.
Significant market opportunities driven by:
- Government standards and legislation, such as the Decent Homes Standard, the Right to Repair Scheme and applicable gas safety regulations. Such government policies and initiatives place compulsory obligations leading to potential legal liability requiring local authority and housing associations to meet a minimum standard in all social housing. These obligations fall on housing bodies regardless of budgetary pressures and demands they face in other areas.
- Over 1.25 million local authority and housing association dwellings across London and South East England and for the year ended 31 March 2014 over £2.5 billion was spent on their repair, maintenance and supervision of properties
Bilby Plc - ‘Buy & and build’ opportunity
- The Directors believe that there are opportunities to expand the Group’s operations through further acquisitions of businesses operating in markets similar to P&R
- Through consolidation by way of a ‘Buy-and-Build’ strategy the Directors believe that they will deliver further and accelerated growth. In particular, many of the larger and potentially significantly profitable social housing maintenance contracts are subject to pre-qualifying conditions which are often based on a minimum level of revenue set above the Group’s current level. The Directors believe that an enlarged group will be able to tender for such contracts.
For further information please contact:
- Bilby Plc Telephone: +44 20 8300 0300
- Darren Dunnett - Managing Director
- David Ellingham - Finance Director
- Hudson Sandler Telephone: +44 20 7796 4133
- Charlie Jack
- Emily Dillon
- Charles Stanley Securities Telephone: +44 20 7149 6000
- Russell Cook
- James Greenwood
Board of Directors
Phil Copolo - Founder and Deputy Chairman
Mr Copolo has grown and led the business since 1977. Takes an active role in the management of P&R and is a qualified gas engineer by trade. Has over 40 years’ experience managing maintenance and building services and is respected throughout the industry. Responsibilities to include implementation of the Buy and Build strategy.
Darren Dunnett - Managing Director
Mr Dunnett has been working at P&R for 21 years and oversees the financial, personnel, procurement and IT functions. Dedicated to the continued growth of the Group both in terms of geographical coverage and increasing the quality of service provided to both corporate and residential clients.
David Ellingham FCCA - Finance Director
Mr Ellingham is a Fellow of the Chartered Association of Certified Accountants, he is responsible for identifying complementary targets for the Buy and Build strategy and brings a wealth of experience in merger and acquisitions. Has prior board experience acting as executive director of various quoted companies.
Sangita Shah - Non-Executive Chairman
Mrs Shah has both executive and non-executive board experience. Board advisor to Global Reach Technology, a regular consultant to HM Cabinet Office and for a number of blue chip organisations such as HSBC, Rathbones and MGM Advantage. Director at Swindon Town Football Company Limited.
David Johnson - Non-Executive Director
Mr Johnson has had a long and successful career in the investment sector with a number of leading City investment houses including Sun Life, Henderson Crosthwaite, Investec. And Panmure Gordon. He joined Chelverton in 2014 where he has responsibility for the group’s private equity investments.