Epic sold as record profits announced

E.learning Age, Sep 2005

Epic has been bought by Huveaux plc after announced records profits. Huveaux was formed in 2001 with the objective of building a substantial publishing and media company by acquisition and organic growth. The deal values Epic at £22.7 million, a price which represents approximately ten times earnings.

On a turnover of £8.1 million for the year ended 31 May 2005 it made a profit before tax of £2.1 million, in the previous period it had produced a profit of £1.4 million on a turnover of £7.3 million.

When the announcement was made confirming the takeover of Epic by Huveax, Donald Clark, Epic's chief executive officer, said: "Epic has established itself as the leading e-learning company in the UK. As such we have attracted the attention of Huveaux who want to use our positions and skills to grow the company into something stronger."

Announced the proposed deal, John van Kuffeler, chairman of Huveaux, said: "Today's announcement marks a further step towards Huveaux's objective of building a substantial publishing and media business. By acquiring a market leader in the growing UK market of e-learning, Huveaux will have acquired a good business which not only complements each of our political, learning and professional divisions, but also provides opportunities to add value to our existing products and intellectual property."

During the financial year, Epic returned £3 million to shareholders following a decision by the directors that the company was generating cash in excess of its capital requirements.

Commenting on the results, James Gordon, chairman of Epic, said: "The balance of work between the private and public sector remains approximately even. Margins have been healthy in both sectors and we continue to be active in both. The current year has started satisfactorily."