Acquisition

RNS Number : 7595O

Begbies Traynor Group PLC

01 February 2019

 

1 February 2019

Begbies Traynor Group plc

Acquisition

Enhancing and widening our specialist property consultancy services

Begbies Traynor Group plc (the "Group") today announces the acquisition of the entire issued share capital of MMXI Limited, which trades as Croft Transport Planning & Design ("Croft"). The ten strong Manchester based team, including management, will be integrated with the Group's existing Eddisons property services division.

Croft was established in 2010 by its existing management and the business provides highways, transport and traffic advice on commercial, residential and mixed use schemes to a corporate client base, which includes developers, house builders and land owners. In line with our strategy, the acquisition will strengthen the Eddisons professional services business, through expanding the consultancy services offered to real estate developers and corporate clients.

In the financial year ended 30 September 2018, Croft reported annual revenue of £1.8 million and
pre-tax profits of £0.7 million, when reported on the same basis as the Group. It had gross assets of £2.2 million as at 30 September 2018.

Principal terms of the acquisition

The acquisition is for an initial consideration of £1.5 million, to be satisfied by £1.125 million in cash from the Group's existing resources and through the issue of 640,150 new ordinary shares of 5 pence each in the Group ("Ordinary Shares"). The acquisition is on a cash free, debt free basis.  

Under the terms of the acquisition, additional contingent consideration of up to £2.5 million will become payable subject to the achievement of stretching financial targets for the business in the five year period directly following completion.  Any additional consideration is calculated according to an agreed formula and is payable in cash.

The acquisition is expected to be earnings enhancing, both initially and after any additional consideration is paid.

An application has been made for 640,150 Ordinary Shares to be admitted to trading on AIM ("Admission") in part satisfaction of the initial consideration. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares in the Group and it is expected that dealings in these new Ordinary Shares will commence on 6 February 2019.

Following Admission, the Group will have 111,116,370 Ordinary Shares in issue. The Group does not hold any shares in treasury and, therefore, this figure may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the Group.

Anthony Spencer, Director at Eddisons, commented:

"I am very pleased to welcome the Croft team into Eddisons. The acquisition will enhance our professional services business, through widening the range of our specialist consultancy services and increasing the number of our clients. This is our fourth Eddisons acquisition since we joined the Group and we continue to seek opportunities for further growth, both organically and by strategic acquisition."

Ric Traynor, Executive Chairman of Begbies Traynor Group plc, commented:

"The acquisition of Croft is in line with our strategy to develop our property services division, by increasing both the scope of its service offering and geographical coverage. Croft has excellent relationships with a broad range of clients, which have been developed by providing a consistently high quality, specialist and professional service over many years."

 

Enquiries please contact:

Begbies Traynor Group plc                                                                                             0161 837 1700

Ric Traynor - Executive Chairman

Nick Taylor - Group Finance Director

Canaccord Genuity Limited                                                                                             020 7523 4588

(Nominated Adviser and Joint Broker)

Sunil Duggal / Chris Connors

Shore Capital                                                                                                                     020 7408 4090

(Joint Broker)

Mark Percy / Anita Ghanekar

MHP Communications                                                                                                      020 3128 8572

Reg Hoare / Katie Hunt

Information on Begbies Traynor Group can be accessed via the Group's website at
www.begbies-traynorgroup.com

 

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