Hays PLC
3 November 1999
Acquisitions in BPS, Personnel and Commercial Core activities
Hays plc today announces the acquisition of Hutchinson Smith Limited, a UK-
based IT contracting and solutions business, and Cannon Couriers, a London-
based same-day delivery service.
Hutchinson Smith offers a complementary range of services to Hays' existing
Business Process Support (BPS) and Personnel operations through its three
wholly-owned subsidiaries, Redfern Consultancy (Redfern), Computer Team Group
Limited (CTG) and HS Managed Insourcing Limited (HSMI). CTG and HSMI, which
provide permanent and contract IT-recruitment and managed HR solutions, will
be merged with Hays IT Personnel, substantially increasing the number of IT
contractors and making it one of the UK's largest IT recruitment companies.
Redfern, an SAP Consulting Partner, acts as a strategic IT consultancy,
offering systems development and integration. Its acquisition will support
the delivery of integrated customer solutions currently offered by Hays BPS.
Hutchinson Smith was acquired for an initial consideration of £27.75 million
including debt. Further payments up to a maximum of £13.0 million may become
payable by Hays, conditional upon the level of profits achieved by Redfern in
the two years to 30 June 2001. In the year to 31 July 1999, Hutchinson Smith
had a proforma operating profit of £2.6 million, on turnover of £75 million.
At 31 July 1999 it had debt-free net assets of £6.6 million.
Cannon Couriers was acquired for a total consideration of £5.1 million debt-
free, payable over a 12 month period. At completion the business had audited
debt free net assets of £700k. For the year to 31 March 1999, the business
had an adjusted net operating profit of £800k on sales of £4.0 million.
Cannon Couriers will be integrated with Hays DX' same-day delivery service,
strengthening their position in the UK market and making them a market-leader
in the important London area.
Ronnie Frost, Chairman commented:
'Hutchinson Smith is an excellent strategic fit with our business. Redfern
extends the range of services provided by our IT-related business support
operations, whilst CTG and HSMI will further strengthen our growing IT
personnel business making Hays IT one of the top 5 in the UK.
Cannon Couriers is a strategic acquisition that builds on our objective of
becoming a leading player in the fast-growing UK express courier market.'
For further information, please contact:
Ronnie Frost Chairman, Hays plc 01483 302 203
Andrew Grant Brunswick 0171 404 5959
Corinne Daniels
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