Brulines deal still on

Dec 1 2009 by jez Davison, Evening Gazette

STOCKTON data management firm Brulines Group said a stalled acquisition bid was not dead in the water as it announced solid half-year results this morning.

The company has already bought 11.52% of the share capital of Southampton-based Universe Group with a view to a full takeover.

However talks over a potential deal are thought to have stalled on the price Brulines is prepared to pay for the AIM-listed electronic payment specialist.

This morning Brulines said it was still keen to do a deal and was seeking ways to “resolve this impasse and progress the transaction”.

Chief executive James Dickson said: “We are still in dialogue (but) our forecourt strategy is not dependent on Universe. We are looking at other options.”

He said the forecourt, vending and leisure markets all offered opportunities for Brulines after the company delivered “a robust set of results in line with expectations”.

In the six months to September 25, turnover rose 11.3% to £9.9m while pre-tax profits nudged up to £2.2m from £2.17m in the corresponding period last year.

Recurring revenues now account for more than 70% of group turnover, while gross margins rose from 55% to 58%.

A significant proportion of Brulines’ repeat business is derived from the pub sector.

Recently the company secured its biggest ever distribution deal to supply its beer quality and dispense monitoring system to pub giant Greene King, which today reported a recession-busting 3% rise in half-year profits to £60.7m.

The i-draught system measures the quantity, speed, temperature and quality of beer served and will be rolled out across the pub operator’s 1,400-strong UK estate.

The pub sector has also caused Brulines some discomfort, though, with industry groups accusing the Teesside firm of supplying inaccurate information from its equipment - a claim that has since been quashed by Trading Standards.

Mr Dickson today said the claims had not damaged Brulines or the reputation of its data monitoring equipment, which measures quality indicators of a pint of beer and manages data from more than one in three UK pubs.

“Interest groups have been trying to discredit Brulines for some time. We have been to court about 300 times and we have yet to lose a case.”