Retec Digital Plc (RET) – Acquisition of vending business

RETEC DIGITAL PLC (RET) – Acquisition of vending business

Retec Digital Plc, the multi-channel marketing services company and one of the UK’s largest providers of guided selling solutions, is pleased to announce that it has acquired the contract to supply photo booths to Wm Morrison Supermarkets plc (“the Morrisons’ Contract”) from the Administrators of the Consolidated Vending Plc (“CVD”) group.

On 15 September 2008, CVD was suspended from trading on AIM under the ticker code CVD and announced that it had appointed Tenon Recovery as Administrators under the terms of the Insolvency Act 1986. Retec, which counts Tesco, ASDA and Sainsbury’s amongst its clients, has paid a consideration of £450,000 in cash for the trading assets associated with the Morrisons’ Contract.

CVD reported revenue for the year ending 31 December 2007 from continuing operations of £3.4 million, which is segmented as £3.0 million from photo booths and £0.4 million from children’s rides. The loss before taxation for the year ending 31 December 2007 was £1.2 million.

The Morrison’s Contract represents approximately 60% of the photo booth turnover of CVD. The Board believes that combining the Morrisons’ Contract with Retec’s existing retail activities will provide good opportunities for efficiency savings and enhanced customer support across the Group’s nationwide network.

John Cole, CEO of Retec, stated: “We are delighted with the acquisition of the Morrisons’ Contract, which will provide a number of synergies with our existing field engineering team. Through this transaction we are able to provide a more comprehensive and efficient field engineering service to all our customers across the UK.”

Roger Owen, Property Director, Morrisons said: “We are pleased to have secured this agreement with Retec and look forward to exploring opportunities for growing the business we do together.”