Print firm in takeover talks

Prime Active Capital, the printing and card services group, is "well-advanced" in talks over a possible acquisition that could significantly change its profile.

Peter Lynch, executive chairman of the company, said yesterday the firm was engaged in pursuing a "significant transaction" outside the Republic.

In results issued yesterday, Mr Lynch told shareholders his team was "committed to identifying and moving aggressively on investment opportunities where it is perceived significant value can be derived for the shareholders of the company".

He said "identification and engagement on some opportunities is well-advanced".

A deal is likely over the coming six months.

Former Eircom and Adare Printing executive Mr Lynch took the helm at the company, previously called Oakhill, in May.

He has a 20 per cent stake in the firm.

In July, he told shareholders he wanted to grow turnover from about €30 million to €400 million through acquisitions in the printing and telecoms sectors.

The figures released yesterday show that €1 million was paid out to executives who departed as Mr Lynch took over, pushing Prime Active Capital into an operating loss of €94,000 for the first half.

This compared to a profit of €162,000 a year earlier. The payouts were included in non-recurring exceptional costs of €1.5 million that also covered the cost of a €15 million gross placing finalised in June.

Further exceptional costs of €1.8 million related to accounting changes made to the value of warrants.

Revenues for the first half came in at €15.1 million, down 9.9 per cent from €16.8 million in the same period of 2006. The decline came on the back of the closure of the firm's commercial print business in late 2006.

Shares in Prime Active Capital did not react well to the results, shedding 15 cent to close at €1.15.