MRN Morson Grp

 

TIDMMRN 
 
RNS Number : 2826N 
Morson Group PLC 
09 June 2010 
 

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| For immediate release            |                      9 June 2010 | 
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                                Morson Group PLC 
                            ("Morson" or the "Group") 
 
        Acquisition of the business and assets of Wynnwith Group Limited 
 
Morson, the UK's leading provider of technical engineering personnel and project 
design solutions, is pleased to announce the formation of a joint venture 
subsidiary, Recruit Now Limited which will be renamed Morson Wynnwith Limited 
("MW"), which has acquired the business and assets of Wynnwith Group Limited 
("Wynnwith") and the issued share capital of Wynnwith SRL, its small trading 
Italian subsidiary, out of administration for a total cash consideration of 
GBP7.75m. 
 
Wynnwith, established in 1973, was a well-established respected competitor of 
Morson, providing technical and engineering personnel to a range of blue chip 
clients in the aerospace, defence, marine, electronics, airline and rail 
industries and engaged over 2,000 contractors. The Board understands pro-forma, 
full-year revenue of Wynnwith for the period to 31 March 2010 was of the order 
of GBP70m and that the business has been loss making for some time. 
 
MW was formed with the sole purpose of acquiring the business and assets of 
Wynnwith and is a joint venture between the existing shareholders of Wynnwith 
(who hold 49% of the issued share capital of MW) and Morson (who hold the 
remaining 51%). It is expected that the financial statements of MW will be fully 
consolidated into the Group's accounts.  None of the existing Wynnwith directors 
or employees will be appointed to the board of Morson. 
 
The assets acquired include at book value approximately GBP9.0m of debtors and 
GBP0.3m of other assets, certain employee and client contract related 
liabilities will also transfer. The consideration for the acquisition is being 
met entirely from the Group's internally generated cash provided as a loan to 
Morson Wynnwith Limited. 
 
Commenting on the acquisition, Morson Chief Executive, Ged Mason, said: 
"Wynnwith is a longstanding, significant business operating in our core market. 
The current recessionary environment has been challenging for several of our 
competitors who, unlike Morson, cannot restructure operations to maintain 
operating margins or lack balance sheet strength.  Under Morson ownership, 
Wynnwith's client base and suite of enhanced recruitment and technical services 
will integrate into the systems, procedures and service offerings of the wider 
Morson Group which we are confident will deliver business opportunity and 
increased market share. We look forward to updating the market on this joint 
venture over the coming months." 
 
In support of Ged Mason's comment Julian Morison, CEO of the newly formed Morson 
Wynnwith, stated: 
"This is an excellent outcome for Wynnwith. As previous competitors, the synergy 
of the combined businesses moving forward will be a potent force. With the 
backing of Morson Group, the Wynnwith teams can now achieve real step change and 
deliver unrivalled service to both clients and contractors". 
 
                                      ENDS 
 
For further information, please contact: 
 
+------------------------------+------------------------------+ 
| Morson Group PLC             |                              | 
+------------------------------+------------------------------+ 
| Ged Mason, Chief Executive   | +44(0)161 707 1516           | 
|                              |                              | 
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| Paul Gilmour, Finance        |                              | 
| Director                     |                              | 
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| Kevin Gorton, Managing       |                              | 
| Director                     |                              | 
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|                              |                              | 
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| Brewin Dolphin (NOMAD)       |                              | 
+------------------------------+------------------------------+ 
| Matt Davis                   | +44(0)845 213 4730           | 
+------------------------------+------------------------------+ 
|                              |                              | 
+------------------------------+------------------------------+ 
| Buchanan Communications      |                              | 
+------------------------------+------------------------------+ 
| Diane Stewart                | +44(0)20 7466 5000           | 
+------------------------------+------------------------------+ 
| James Strong                 |                              | 
+------------------------------+------------------------------+ 
| Carrie Clement               |                              | 
+------------------------------+------------------------------+ 
 
Notes to editors. 
Established in 1969 Morson is the largest and one of the longest established 
technical staffing companies in the UK. The Group currently provides personnel 
on long term assignments for some well known major infrastructure/defence 
projects. These include the construction of the Olympic Games Development, CVF 
aircraft carrier, rail maintenance and upgrades for Network Rail, Transport for 
London and also nuclear design, decommissioning, maintenance and asset 
improvement. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 ACQZMGGVVRVGGZM 
 

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