RNS Number:3998Q
Hot Group PLC
01 October 2003


For immediate release


1 October 2003


                  hot group plc ("hot group" or the "Company")

            Acquisition of The Buzz Recruitment Consultancy Limited
                      and Buzz Tempz Limited ("The Buzz")


hot group, the AIM listed recruitment specialist, announces that on 30 September
2003 the Company completed the acquisition of the entire issued share capitals
of The Buzz Recruitment Consultancy Limited ("Buzz Recruitment"), a business
specialising in permanent recruitment in the leisure, retail and corporate sales
markets, and Buzz Tempz Limited ("Buzz Tempz"), a business specialising in the
supply of temporary staff ("Acquisition").


The Acquisition is in line with the Company's strategy of growing its business
by acquiring complementary recruitment businesses, with a view to becoming a
leading online and traditional recruitment company within the UK. Doug Woodward
CEO of The Buzz will join the board of hot group as Managing Director of the
Recruitment Division. This strengthens the management team and provides
additional experience to the Company, as it continues to pursue its longer-term
growth objectives.


The aggregate consideration payable in respect of the Acquisition comprises
initial consideration of #388,350, to be satisfied as to #149,625 in cash,
#38,350 through the repayment by the Company of certain loans outstanding to the
vendors and #200,375, to be satisfied by the issue of 1,059,064 new ordinary
shares of 10p each in hot group ("New Ordinary Shares").


Further deferred consideration of up to #100,000 will become payable on the
achievement by The Buzz of certain profit targets during the six month period
immediately following completion of the Acquisition ("Earn-Out Period"). The
deferred consideration will be subject to adjustment based on the working
capital position of The Buzz at the end of the Earn-Out Period. Any deferred
consideration which becomes payable is expected to be satisfied in cash.


For the year ended 31 March 2002, Buzz Recruitment recorded turnover of
#934,999, a loss before taxation of #80,970 and as at 31 March 2002 had net
liabilities of #28,345. For the year ended 31 March 2002, Buzz Tempz was
dormant.


hot group Chief Executive Tony Reeves said: "This is a further step in the
exciting development of hot group into a leading recruitment company. Doug
Woodward was an integral part of the success we had when building Delphi Group
into a leading European recruitment operation. The acquisition therefore not
only reunites a successful team but increases our presence within the
traditional recruitment market both geographically and by critical mass."


"We are already the UK's fifth largest supplier of online recruitment services
and our expansion into the traditional recruitment market began with the
acquisition of Parkside Recruitment Limited, a company with a turnover of
#9.5million. We continue to look at other potential acquisitions in both the
online and traditional markets, to fulfil our objective of creating a hybrid
that combines the best of online resourcing with the benefits of traditional
services."


Application has been made to the London Stock Exchange for admission of the New
Ordinary Shares to trading on AIM. It is expected that dealings in the New
Ordinary Shares will commence on 7 October 2003.



Enquiries:

Tony Reeves
Chairman and Chief Executive Officer 
Tel: (0870) 202 0121

Steve Wright
Finance Director 
Tel: (0870) 202 0121

Simon Raggett/Angela Peace
Strand Partners Limited
Tel: 020 7409 3494

Hugo de Salis/Isabel Crossley
St Brides Media & Finance Ltd
Tel: 020 7242 4477



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

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