RTC Group PLC Acquisition of RIG Energy Limited (3946Y)

TIDMRTC

RNS Number : 3946Y

RTC Group PLC

01 December 2014

RTC Group plc

("RTC" or the "Group")

Acquisition of RIG Energy Limited

RTC Group plc, the business services organisation focussing on white and blue collar recruitment providing temporary, permanent and contingent staff to a broad range of industries and clients in both domestic and international markets, is pleased to announce the acquisition of RIG Energy Limited ("RIG Energy") from Recruitment Investment Group Limited for a total cash consideration of GBP875,000 ("the Acquisition")

RIG Energy is a specialist engineering recruitment agency focussed on providing mainly domestic and commercial gas engineers. The business, which operates across the United Kingdom is located in Milton Keynes, employs eleven people and has been established for eleven years.

The business will be integrated into the Group's subsidiary Ganymede Solutions (Ganymede) which provides contingent and temporary labour into safety critical environments. Ganymede has enjoyed significant organic growth over the past five years supporting mainly rail and associated industry clients and this acquisition will enable the business to pursue its strategy of diversification into other safety critical sectors at an accelerated pace. The business will trade as Ganymede and an extensive programme of rebranding and client awareness will be implemented.

For the financial year ended 31 December 2013, RIG Energy's audited accounts showed revenue of GBP5,765,268, with EBITDA (before parent management charge) of GBP210,711 and a loss before tax of GBP16,303. At 31 December 2013 the audited balance sheet showed net assets of GBP204,664.

The Board believes the acquisition will be earnings enhancing in its first full year of ownership and is confident that RTC's subsidiary Ganymede will help drive future profit growth.

Commenting on the acquisition, RTC Chief Executive Andy Pendlebury said:

"This acquisition is an important step in RTC's strategy of building critical mass across each of its core recruitment businesses. RIG Energy is a very successful, professionally run company that will add significant value and diversification to our Ganymede brand by bringing a new area of expertise to the Group complementary to our existing provision of labour into safety critical environments."

Enquiries:

 
 RTC Group plc 
  Bill Douie, Executive Chairman 
  Andy Pendlebury, CEO                              Tel: 01332 861 
  Sarah Dye, Group Finance Director                 844 
                                                    Tel: 07766 505 
                                                    402 
 
 Allenby Capital Limited (Nominated Adviser and   Tel 020 3328 
  Broker)                                          5656 
  Jeremy Porter

About RTC

RTC has three principal trading subsidiaries engaged in the recruitment of human capital resources and the provision of managed services.

ATA Recruitment is one of the UK's leading engineering and technical recruitment consultancies. Supplying white and blue collar engineering and technical staff to a broad range of SME clients and vertical markets.

Ganymede Solutions is focussed on the supply and operation of blue collar contingent labour into safety critical markets.

Global Staffing Solutions predominantly provides managed service solutions for international clients.

www.rtcgroupplc.co

This information is provided by RNS

The company news service from the London Stock Exchange

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