Melorio announces preliminary results and confirms cash offer

Melorio plc Preliminary Results - Regulatory Release
 

Melorio (AIM: MLO), the support services group providing training and assessment services to the information technology, construction, logistics and healthcare sectors, is pleased to announce its results for the year ended 31 March 2010.

Highlights

Continued levels of strong growth:
 

• Revenue up 86% to £58.4m (2009: £31.4m)
• EBITDA* up 65% to £16.5m (2009: £10.0m)
• Basic earnings per share up 29% to 20.0p (2009: 15.5p)
• Diluted earnings per share up 27% to 19.0p (2009: 15.0p)

• 105% (2009: 93%) conversion of EBITDA to operating cash flow; net debt increased to £15.0m (2009: £14.4m) reflecting the impact of the achievement of the Zenos earn-out
• 13 new sites opened and a further six opened post the year end
• Board expects EBITDA of £25.1m for the financial year to 31 March 2011
• Recommended cash offer from Pearson plc of 225 pence per ordinary share

* EBITDA comprises operating profit (£13.6m) before depreciation, amortisation of acquired intangible assets, restructuring costs and share-based payment charge.

Hugh Aldous, Chairman of Melorio, said:

"Even after upgrades we have again finished the year to 31 March 2010 ahead of market expectations.   Our business has caught the tide of both the changing government objectives on skills and training and the needs of the key sectors we serve.  Our success is built on the urgent need in the UK for really competent training and assessment in key industry sectors, trends we expect to see continuing this year.

"I am pleased to announce that we have reached agreement with Pearson plc on the terms of a recommended cash offer of 225p per 10p ordinary share in Melorio which values Melorio's issued and to be issued share capital at approximately £99.3m.  The offer has come at an early stage in Melorio's development and the prospects for the year ahead are strong, however the offer price is a 31% premium to Melorio's closing share price on 17 May 2010, the last business day prior to the date that we announced we had received an approach that might lead to an offer for Melorio.   Pearson is an international education and information company with world‑leading businesses in education, business information and consumer publishing.  Pearson believes that the acquisition of Melorio will support its vocational education strategy by combining Melorio's training delivery skills with Pearson's complementary strengths in educational publishing, technology and assessments.   The Melorio board believes that shareholders should have the opportunity to consider the offer and have therefore agreed unanimously to recommend the offer."

Enquiries:
Melorio plc
Hugh Aldous, Chairman
Alex Sheffield, Group Finance Director
Tel: 020 7389 6800
 
Cenkos Securities plc (NOMAD and broker)
Stephen Keys / Beth McKiernan
Tel: 020 7397 8900
 
Financial Dynamics (Financial public relations)
Billy Clegg / Caroline Stewart / Alex Beagley
Tel: 020 7831 3113

For the full release, including notes to editors, please visit the London Stock Exchange