Toople plc (LON:TOOP), a provider of bespoke telecom services to UK SMEs, has confirmed that further to recent announcements the Acquisition of DMS Holding (“DMSL”) has now completed.
DMS Holding is the holding company for DMSL, a company which provides unified communication services in the UK. DMSL commenced trading in 2002 and has over 15 years’ experience of providing broadband connectivity, mobile and fixed voice and cloud services.
The Board believes that the acquisition of DMSL will be transformational for Toople for the following principal reasons:
· DMSL is a family owned business, which acts as a BT Premier reseller principally in the B2B market
· In the year to 30 April 2019, DMSL’s turnover was £3.1 million, with a profit before taxation of £331,282
· The Company is responsible for over 250,000 BT customers and over 400,000 Revenue Generating Units
· Headquartered in Bishop Stortford, the company also has sales and quality operations based in the same Durban site as Toople’s sales and marketing operations
· DMSL currently offers a portfolio of business services and products, from a single phone line to a multi-site unified comms VoIP platform, delivered via a network of telecoms and IT carriers and content providers across the UK including BT Business, BT Global Services, Gamma , EE, Vonage, Talktalk Business and 02
· DMSL has multiple revenue streams including: upfront cash and recurring revenue from BT activities; recurring revenues from directly managed and contracted customers; and revenue share with resellers
· Once completed the combined Group will be of larger scale opening up opportunities to benefit from operational gearing and operating efficiencies
· DMSL is cash generative, accelerating Toople’s timeline to achieve profitability and positive cash generation
Andy Hollingworth, CEO of Toople, commented:
“We are very pleased to have completed this transformational acquisition and would like to thank all the shareholders, old and new who have backed us, as well as our new debt finance partners HomeSelect Finance. We believe that the combined business will now accelerate to EBITDA profitability and cash self-sufficiency, reducing the historic reliance on the market to provide funds for working capital.
“We now look forward to integrating the businesses and capitalising on the strong operational and market synergies. We look forward to keeping the market updated on financial and operational progress in both businesses and the combined Group ahead of our interim results.”
