RNS Number:7104W
Eleco PLC
19 March 2004

19 March 2004



                                   ELECO PLC

                    Eleco acquires Prompt Profiles for #1.2m

Eleco plc ("Eleco"), the building systems and construction software group,
announces the acquisition of the entire issued share capital of RB Fabrications
(Norwich) Limited ("RBF") for a consideration payable of #1,210,000. RBF is the
holding company for Anglia Air Movements Limited trading as Prompt Profiles ("
Prompt Profiles"). It also owns the freehold property in Norwich occupied by
Prompt Profiles.

Prompt Profiles, which was founded in Norwich in 1982, specialises in the
manufacture and supply of flashings, guttering and other profiled metal
products, which are complementary to Eleco's own roofing systems. Prompt
Profiles' manufacturing facilities are also well suited to the manufacture of
components for rainscreen cladding systems.

Of the total consideration #35,000 is being paid in cash on completion and the
balance of #1,175,000 will be satisfied by the issue of 4.5% Loan Notes  ("Loan
Notes"), #50,000 of which is due for repayment on 31 March 2005 and #1,125,000
on 31 July 2005.  Eleco has the option to redeem the Loan Notes at any time
between 31 March 2005 and 31 July 2005 out of its cash resources or existing
bank facilities, or, subject to market and other conditions at the time, it may
require the vendors to convert some or all of the Loan Notes into such number of
new ordinary shares of 10p each in Eleco, which, when placed on behalf of the
vendors, will produce cash proceeds after expenses equivalent to the nominal
value of the converted Loan Notes.  #525,000 of the Loan Notes will be secured
by way of fixed charge over the freehold property owned by RBF and #650,000 will
be guaranteed by Eleco's bankers.

Audited accounts for the year ended 31 May 2003 showed consolidated profits
before tax of #222,000 on turnover of #757,000. Unaudited accounts for the seven
months ended 31 December 2003 report consolidated profits before tax for RBF of
#161,000 on turnover of  #470,000 and net assets at 31 December 2003 amounting
to #918,000. The net assets at that date included #376,000 in respect of the
freehold property and#395,000 in cash. There were no bank borrowings at 31
December 2003.

The interim results of Eleco for the six months ended 31 December 2003 were
released today.

John Ketteley, Executive Chairman of Eleco comments:

"The acquisition of Prompt Profiles demonstrates our commitment to expanding
Eleco's successful Building Systems manufacturing operations when suitable
opportunities present themselves. Prompt Profiles is a sound business, which
enjoys an excellent reputation for quality and service in the roofing
accessories market and I am delighted that it is joining the Eleco Group.

"Prompt Profiles' manufacturing capabilities and product range are complementary
to those of SpeedDeck Building Systems, our existing roofing and cladding
business and we believe SpeedDeck's national sales team will provide useful
marketing opportunities for Prompt Profiles' products. Prompt Profiles'
production facilities are also well suited to the manufacture of components for
the expanding rainscreen cladding market in which Eleco is becoming increasingly
engaged."


Enquiries to:
John Ketteley, Executive Chairman                    Tel: 01920 443 830
Eleco plc

David Dannhauser, Finance Director                   Tel: 01920 443 830
Eleco plc

Tarquin Edwards/Chris Steele                         Tel: 020 7929 5599
Holborn




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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