Paper millionaires are all a part of the e.plan.Print

Date: Feb 13, 2001Words: 525Publication: The Birmingham Post (England)ISSN: 0963-7915

Byline: Anita Deshmukh City Editor

The Midlands has four new paper millionaires after the pounds 4.1 million acquisition of Birmingham digital media and e-business company e.plan by AIM-listed Midland company Media Square.

The dot.com company, whose clients include British Telecom, Barclays and Pertemps, becomes the hub of the group as its first strategic acquisition.

The four directors who founded e.plan, managing director Ian Watson and fellow directors David Mitchell, Anil Varma, and Colin Shephard, stand to become millionaires on paper through the shares, loan notes and a pounds 130,000 cash deal.

The cash will be used to provide working capital for the Nechells-based company's expansion plans.

Mr Watson, who becomes chief executive of Media Square with current chief executive Russell Stevens moving over into the finance director's seat, said: 'We started out in 1989 as a digital reprographics company called Reproplan but grew to embrace web integration and the expanding field of digital solutions.

'The past 18 months has been a tremendous time for us and we have an exciting range of products and a great management team.

'It has been a good day for e.plan and vindicates all our investments. Now we are looking to make complimentary acquisitions.'

Media Square was set up by former Minister for Trade and Industry John Butcher, Midland entrepreneur Chris Swan, who founded Finelist, and Black Country accountant Mr Stevens.

'We aim to build a powerful digital media group from a Midlands base,' said chairman Mr Butcher.

'The acquisition of e.plan is a major step forward to achieving our objective and provides us with an excellent base from which to build our group.'

He said the medium-term objective was for e.plan to increase turnover significantly and create a number of new jobs spurred on by a proposed pounds 1 million investment in high-tech

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equipment and larger premises.

The firm, which employs 41 staff, had a turnover of pounds 2.3 million in the year ended September 30. It provides a wide range of services from e-commerce, multimedia and IT consultancy through to digital print and reprographics.

The acquisition came just days after British Airways signed on as an e.plan client, taking up the online marketing e-brochure product developed and trademarked by the firm.

E.plan directors Mr Mitchell, Mr Varma, Mr Shephard and Mark Cupitt remain on its board. The brand will be retained.

Media Square got off to a flying start on AIM back in September, its share price jumping from 25p to 79.5p. Nearly a million shares were traded on its first day.

The flotation raised pounds 900,000 through the placing of 4.2 million shares, and investments from the founders brought its war chest for acquisitions to pounds 1.25 million. The nature of the deal means this cash remains largely intact to finance acquisitions. Media Square shares closed unchanged at 451/1p.

City View, Page 19

CAPTION(S):

Taking a shine to future success are Ian Watson, left, former managing director of e.plan and now chief executive of Media Square, with John Butcher, chairman of Media Square and former MP for Coventry South-west

COPYRIGHT 2001 Birmingham Post & Mail LtdCopyright 2001 Gale, Cengage Learning. All rights reserved.

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