Company Name: 2 ERGO

Stock Market: (RGO: LSE)
Industry Sector: Software and Programming
Market Capitalization: £35.56 million
Yearly Revenue: £32,565 (as of August 31, 2008)
Operating Income: £3,008 (as of August 31, 2008)
Net Income: £2,535 (as of August 31, 2008)
Total Assets: £21,346 (as of August 31, 2008)

Key People: Keith Seeley (non-executive chairman of the board), Barry Sharples (joint chief executive officer, executive director), Neale Graham (joint chief executive Officer, executive director), Jill Collighan (finance director, company secretary, executive director), Martin Caller (non-executive director)

Headquarters Address: St. Mary's Chambers Haslingden Road
Rawtenshall, ENG BB4 6QX
Number of Employees: 82 (as of August 2008)
Website Address: www.2ergo.com

Company Overview
2 Ergo Group Plc is involved in supplying telecommunication software, development, and application. It is engaged in the supply of integrated and joined mobile services and products. The company’s customers include marketing agencies, mobile network operators, organisations and media brands in the fiscal services, travel and retail sectors, within other industries. Its subsidiaries include M-Invent Inc., Marblesquare Limited, 2ergo Inc., 2ergo Limited, 2ergo Americas Inc., Georgia Holding Company Inc., Proteus Movil, and Telitas US Inc.

In February 2009, 2 ERGO Group PLC stated that it made a deal on the terms of an urged all-share acquisition of the whole issued and to be issued ordinary share capital of Broca PLC. Conditions of acquisition are: current Broca shareholders will be entitled to have 0.0909 of a New 2 ERGO share in exchange for the termination of each of their current Ordinary Shares based on the company’s Closing Price on February 4, 2009 of 137.5%. The acquisition values each Ordinary Share at around 12.5% and the current issued ordinary share capital of Broca at around £4.9 million. The condition represents a premium of about 25.0% to 10% per Ordinary Share, as the Closing Price on January 14, 2009, the final dealing day before the beginning of the Offer Period. Around 3.3% to 12.1% per Ordinary Share, as the average Closing Price for the last three months before January 14, 2009, the final dealing day before the beginning of the Offer Period. Assuming no additional Ordinary Shares are issued in the period between the date of this statement and the Effective Date, the existing 2 ERGO Shares will make an approximately 91.23% of the issued ordinary share capital of 2 ERGO. The scheme will be effective on or before April 7, 2009.

Financial Overview
Year on year the 2 ERGO Group had comparatively flat revenues (£33.31 million to £32.57 million), though the company produced net income 4.41% from £2.43 million to £2.54 million. A decrease in the price of goods sold as a percentage of sales from 74.14% to 70.00% was a part in the net income growth in spite of the flat revenues.

In 2008, 2 ERGO Group did not produce a major amount of cash. However, it has gained £1.17 million from its business operations for a Cash Flow Margin of 3.60%. Furthermore, the company made £176,000 cash from funding while £1.48 million was used on investing.

2 ERGO Group seems to have less financial risk as the company owns an important amount of cash on its books with less or no debt.