JOURNEO PLC

Management Reports • Apr 30, 2015

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RNS Number : 7717L

21st Century Technology PLC

30 April 2015

30 April 2015

21st Century Technology plc

("21st Century", "the Company" or "the Group")

Acquisition

21st Century Technology plc (AIM: C21), the specialist provider of CCTV and monitoring systems to fleet and network operators in the bus and rail industries, is pleased to announce the acquisition of the entire issued share capital of Region Consultants Ltd, Region Services Ltd and RSL Cityspace Ltd (together "RSL Group"). Total consideration for the acquisition of RSL Group is £1.3m and is being satisfied as to £1.1m in cash, funded from the Company's existing cash resources, and a three year loan note of £0.2m bearing interest at 6 per cent.  The loan note is repayable in whole or in part, in each case subject to notice, at the holders' election on each anniversary date of issue or at the Company's election at any time six months after issue.

Based in Coventry, RSL Group is one of the UK's market leaders in developing and supplying public information systems for bus travel, such as interactive terminals, real-time display screens and kiosk based ticketing machines. Founded over 20 years ago, RSL Group has built an enviable reputation for high quality design and installation of travel information display and ticketing systems in bus and rail hubs. Its customers include Passenger Transport Executives (PTEs) and local authorities and their technologies are installed in many towns and Cities around the UK. RSL Group has its own development team and its industry proven Electronic Passenger Information (EPI) software is now in its 4th generation.

RSL Group comprises three separate companies under common control which in the year ended 30 June 2014 recorded unaudited consolidated sales of £4.0m, operating profit of £0.4m and had net assets of £0.4m.

The acquisition is part of 21st Century's strategy to diversify earnings, add software capability and move beyond providing individual solutions for the supply and installation of CCTV, telematics and monitoring systems, towards highly integrated on-board technologies with connected and web based back-office software management applications.  RSL Group's combination of hardware, software, installation and management of closely related products and services is highly complementary to 21st Century's offering and provides the Group with a valuable step towards realising the Board's strategic vision.

Russ Singleton, CEO of 21st Century Technology said:

"RSL Group specialises in real-time passenger travel information and ticketing systems within local authorities and PTEs, where most of the large operators are active in providing public transport. It is with these operators that 21C works closely, as an 'on-vehicle' bus and rail systems integrator.

"This acquisition combines some important capabilities to develop new, class-leading products and services to help us grow our business and deliver enhanced value for money solutions to customers through our economies of scale. We have already identified some valuable potential synergies between the two businesses having invited RSL Group to incorporate their display technology into our 3 carriage 'Smart-Train' systems integration test-bed. It was here that we also discovered that their 'get it right first' time ethos and business culture fits very well into our own.

"RSL Group customers can be assured of a continuation of the high levels of service they have come to expect, as well as now having the opportunity to access a much wider range of products and services offering."

Enquiries:

21 Century Technology plc	Russ Singleton/Glenn Robinson	Tel: 0844 871 7990
finnCap Limited
Nominated Adviser	Julian Blunt	Tel: 0207 220 0500
Corporate Broking Media enquiries	Malar Velaigam
Communications Portfolio	Ariane Comstive/Helen Carpanini	Tel: 07785 922354

Notes to editors:

21st Century Technology plc's (AIM: C21) principal activities are the provision of CCTV and monitoring systems to the fleet and network operators in the bus and rail industries. The Group's business model is in transition; from providing individual solutions for the supply and installation of CCTV, telematics and monitoring systems, towards highly integrated on-board technologies with connected and web based back-office software management applications.

The Group is currently preferred suppliers of mobile CCTV to two of the UK's largest bus operators: Arriva UK Bus and First Group UK Bus. It also provides installation, maintenance & support services to Keolis and Arriva in Stockholm, Sweden and is deploying a novel passenger comfort-oriented driver behaviour system to Keolis throughout France.

This information is provided by RNS

The company news service from the London Stock Exchange

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