Sale of Premier Limpet

Amcomri Group plc (AIM: AMCO), the 'Buy, Improve, Build' UK and Ireland focused, specialist engineering services and industrial manufacturing group, is pleased to announce that it has completed the sale of its wholly owned subsidiary, Premier Limpet Limited ("Premier Limpet"), the UK's largest independent manufacturer of printed and plain adhesive tape, to Dalpo Group UK Limited, a wholly owned subsidiary of Dalpo Poznań sp. z o.o. ("Dalpo"), for a minimum initial consideration of £10.1 million (the "Disposal").

Additional consideration, calculated as to 0.9x the value of any trading EBITDA exceeding £1.4 million for the year ending 31 December 2026, will also be payable to Amcomri. Before any additional consideration and after repayment of debt, the Group has received net cash proceeds of approximately £7 million.

Background to the Disposal

The Group acquired Premier Limpet in August 2021 for an initial consideration of £2.95 million of which only £0.25 million was funded from Amcomri cash reserves, with the balance funded by an asset-based lending facility. A further £1.15 million deferred consideration was paid from the operating cash flow of Premier Limpet under an earn-out agreement. With net initial cash proceeds received of approximately £7 million, the Disposal represents a multiple on invested capital of approximately 28x, demonstrating Amcomri's 'Buy, Improve, Build' model creating significant shareholder value.

The 'Buy, Improve, Build' model

Premier Limpet was originally identified by Amcomri in 2021 as an opportunity with significant latent improvement potential. Following the acquisition, a structured programme was implemented by Amcomri's Business Process Improvement team as part of the initial 'Improve' phase of the Amcomri model. This included the introduction of new costing and pricing models, the optimisation of working capital levels, and the recruitment of a new sector experienced management team to further refine and develop Premier Limpet's commercial strategy.

As part of the commercial development plan, the new management team identified an opportunity to add water activated adhesive paper tapes to the product portfolio of Premier Limpet. Subsequently, a bolt-on opportunity was identified to acquire and integrate the trade and assets of Supreme Tapes and Converting Ltd ("Supreme"). This was successfully completed in March 2024, providing Premier Limpet with the immediate benefit of an established supply chain and market for the rapidly growing water activated adhesive tape market.

The progressive implementation of the 'Improve & Build' elements of Amcomri's model following acquisition in 2021 has resulted in significant and sustained improvements in both the underlying gross margins and profitability of Premier Limpet.

Against this background, the Board has now determined that it is an appropriate time to execute the sale of Premier Limpet to Dalpo, a large European player in the printed and plain adhesive tape market, who as a strategic purchaser, have the necessary sector expertise and leverage to take the business to the next level.

The Board believes the Disposal will deliver material value to Amcomri's shareholders. The net proceeds will provide the Group with additional cash resources to fund further acquisitions through its now proven 'Buy, Improve, Build' model that targets high quality specialist engineering and industrial businesses with inherent latent improvement potential. The Board confirms that the Group is trading in line with market expectations.

Information on Premier Limpet

Premier Limpet delivers approximately 40 million square metres of tape annually through its distributor network. Operating from two manufacturing facilities in Cambridgeshire and Hertfordshire, Premier Limpet produces a diverse range of bespoke printed adhesive tapes using a wide variety of materials and adhesives. In March 2024, Premier Limpet expanded its portfolio through the small bolt-on acquisition of the trade and assets of Supreme which were fully integrated into its Cambridge facility.

For the year ended 31 December 2025, Premier Limpet generated revenues of approximately £11.6 million (2024: £11.6 million), profit before tax of approximately £0.71 million (2024: £1 million) and had net assets of approximately £0.7 million.

Hugh Whitcomb, Chief Executive Officer of Amcomri, commented:

"The Disposal of Premier Limpet to a strategic European purchaser, demonstrates the success of Amcomri's 'Buy, Improve, Build' model, and our ability to systematically develop the latent opportunities that can exist in niche manufacturing and engineering SME businesses.

"At the time of acquisition in 2021, our key objectives were to both gain scale and demonstrate that, through application of our model, we could effectively 'break the SME plateau' of performance that mature SME's often reach.

"Following the successful implementation of our model over the last five years by the Premier Limpet team, supported by our Group Business Improvement team, the Board has determined that now is the optimum time to realise an exceptional return for its shareholders.

"Dalpo's sector experience and coverage are an excellent fit for the next stage of Premier Limpet's development, and we wish Mateusz Rawecki and the Dalpo team well in this next chapter and their entry into the UK market.

"Finally, we would like to thank Martin Hutchings, Nic Leslie and the whole Premier Limpet team for their contribution, commitment and dedication to the business, and wish them every success as part of the wider Dalpo organisation."