Nuneaton-based exhibitions and conferences goup Mice Group, yesterday said it was close to securing pounds 80 million in new banking facilities from Barclays Bank which it will use to makeacquisitions.

Some of the funds raised may be used to buy parts of troubled advertising group Cordiant or Incepta, said chief executive Mike Curley.

He added: ‘Now is an ideal time to be looking for acquisitions. Valuations are low and we’re actively looking to go on the acquisitions trail.’

He hinted that the group may be interested in Fitch, an exhibitions and events division of Cordiant, and that some parts of Incepta are likely to come on the market as the debt-laden design group seeks to cut borrowings.

‘There are bits of both businesses that we would be interested in,’ said Mr Curley, adding that given the fresh funding, and some recovery in the group’s share price, he could use both cash and shares to fund a ‘more sizeable’ acquisition.

‘We could handle something around the pounds 50 million mark,’ he said.

His comments came as Mice released solid full-year results for the year to February.

Pre-tax profits in the period rose 13 per cent at pounds 7.1 million, on sales of pounds 120.3 million compared to pounds 90.2 million previously.

The rise in sales and profits marked the group’s eighth successive year of growth.

However, the Sars virus in the Far East would cost the group about pounds 500,000 in the first half of the current financial year, he said. The war with Iraq will also hitprofits in the six months as a number of projects have been delayed until the second half of 2003-04.

‘We’ve curtailed all new investment in the Far East until the Sars epidemic is over. One major show – a Motorola product launch – in Beijing, in China, was cancelled, but we still expect to have a reasonable first half,’ Mr Curley added.

Overall, the group’s order book at end-February stood at pounds 60 million.

And reflecting the loss of business in China and the shift in the workload to the second half of 2003-04, analysts are currently forecasting profits of about pounds 2.5 million for the first six months, although the full year results should exceed pounds 8 million.

Total sales are predicted to grow by a third to around pounds 160 million.

Mr Curley played down talk of a venture capital or management buy- out, although he revealed that the board had received several approaches. ‘I still get the occasional approach but I don’t think that taking the company private is the right option. Why should I saddle myself with a load of debt and run the company just to pay back the venture capitalists? We’ve always delivered in terms of market expectations and the key reason for coming to the market in the first place was to grow and develop the company. ‘I still believe this group will be turning over sales of pounds 1 billion by 2010,’ he added.

The final dividend was 1.27p per share making a total of 1 3 /4p per share and the shares closed up a penny at 61 1 /2p, valuing the group at pounds 56.52 million.