Insider Media Limited

Who?
Kidderminster security system design company CTAC.

Did what?
Has been bought by sector rival Westminster Group for £1.8m.

What does this mean?
Banbury-based Westminster is an AIM-listed company that supplies systems and products to the security, defence, fire protection and safety markets. It raised £512,000 to part-fund the deal via the issue of new shares. Two further performance-based payments will be made linked to profits in the two years after completion. Founded in 2004, CTAC is a specialist integrated provider of high-end security solutions to a blue-chip client base including Brinks, DeBeers LV and Seven Trent Water.

Who advised?
A team consisting of Nandita Sahgal and Catherine Leftley at the London office of Seymour Pierce advised the Westminster Group.

Insider comment:
The net assets of CTAC at 31 December 2009 were £279,928. The pre-tax loss for the year, after exceptional costs of £274,453, was £69,770, compared with a pre-tax profit of £200,098 in 2008. The exceptional costs of £274,453 in 2009 relate to contract over-runs, now rectified, and one-off consultancy fees relating to preparation for sale and the NSI certification costs. The first three trading months of 2010 indicate an underlying trading profit of £89,000 and a strong recurring revenue base.

CTAC managing director Adrian Johnson will remain with the company as a consultant for 24 months. All other staff will remain with the company.