Investor News

21 February 2015

Signed Agreement to expand scope of licence

Milestone Group PLC

(“Milestone” or the “Company”)

Agreement signed to expand scope of licence

Milestone, the AIM quoted (AIM: MSG) provider of digital media and technology solutions, is pleased to announce that it has expanded the scope of the previously announced licence agreement with US based Spirituality for Kids International Inc. (“SFK”) to incorporate additional training materials for young people.

This follows the announcement on 23 July 2013 of the pilot’s successful results for the primary school programme, “Winning in the Game of Life”, which addresses the aspects of the Social, Moral, Spiritual and Cultural curriculum learning needs of pupils as per the Department of Education’s expectations and Ofsted’s requirements.

Milestone is currently working with its supply chain partners to roll out the “Winning in the Game of Life” programme, targeting the UK’s 22,000 primary schools. The programme is expected to deliver gross revenues of between £500 and £1,000 per level per school generated through the sale of education materials, training and workbooks.

The expanded scope of the agreement with SFK significantly extends the range of training materials into a wider range of age groups and provides the opportunity for focused and tailored training for young people as they ready themselves for the transition into working life.

This expanded collaboration enables Milestone and SFK to generate revenues from the delivery of co-developed and amended programmes, as well as potentially securing social impact funding as a result of the positive changes in behaviour that these programmes and activities can have on young people. Net revenues from the sale of these collaborated materials will be split equally between Milestone and SFK.

As announced on 29 November 2012, Deborah White, a Director of the Company, is deemed to be a related party and all future transactions arising under the terms of this licence agreement constitute related party transactions pursuant to AIM Rule 13. The Directors of the Company, other than Deborah White, consider, having consulted with Cairn Financial Advisers LLP, the Company’s nominated adviser, that the terms of the transaction are fair and reasonable insofar as the Company’s shareholders are concerned.

Deborah White, CEO said:

 “Generating positive social value is core to our business ethos and this product range has already demonstrated some fantastic outcomes through the successful pilots held last year. We believe there is a market size approaching anywhere between £50m & 100m p/a on offer for this type of product in the UK alone, and subject to successful take up and execution we are now well positioned to benefit. We have had significant interest from a number of large and well known organisations working with young people in the programme materials and their impact and whilst there can be no certainty of a successful outcome in this regard we are very hopeful to be in a position to make further partnerships in due course.” 

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