WYG Plc Acquisition of North Associates (Cumbria) Limited (9243D)
October 30 2015 - 3:00AM
UK Regulatory
TIDMWYG
RNS Number : 9243D
WYG Plc
30 October 2015
30 October 2015
WYG plc
Acquisition of North Associates (Cumbria) Limited
WYG plc (WYG or 'the Group'), the global programme, project
management and technical consultancy, today announces the
acquisition of the entire issued share capital of North Associates
(Cumbria) Limited ('North Associates') together with its subsidiary
Taylor & Hardy Limited (together 'the acquisition'), for a
maximum total consideration of GBP5.0m. This acquisition further
establishes the Group's status as one of the largest property asset
management and planning consultancy businesses in the UK. It also
positions WYG to benefit from some of the anticipated GBP90bn of
investment planned as part of the development of Britain's 'Energy
Coast' in West Cumbria, where WYG also expects to use some of the
planning skills developed as part of its work elsewhere in the
nuclear sector.
Draft accounts of the acquired business for the year ended 31
July 2015, show turnover of GBP2.9m; profit before taxation (after
adjusting for the pro-forma remuneration of its owner-directors) of
GBP486k; and net assets of GBP359k. The acquisition is in line with
WYG's strategy of growing its core, front-end consultancy offering
and increasing the focus on high quality revenues. Taking into
account North Associates' forward order book and available
operating synergies, the Directors expect that the contribution to
Group profits from the acquired business from the year to 31 March
2017 will be significantly higher than the historic level of
profitability and materially earnings enhancing for the Group.
Operating from offices in Carlisle, North Associates provides
specialist property asset management consultancy services which
maximise the value of land and property for its clients, who
include commercial developers, public sector bodies and regional
landowners. Taylor & Hardy Limited is a well-established local
planning consultancy which was acquired by North Associates in
2012.
The first GBP2.3m of the consideration is payable in cash on
completion. A further GBP0.5m of cash consideration is due on the
first anniversary of completion, subject to the collection of
various debts and the conversion of the work in progress at the
time of completion. The balance of up to GBP2.2m represents further
deferred consideration, payment of which will be dependent upon the
recovery of contingent fees over the three years following
completion and will also be payable in cash.
Paul Hamer, Chief Executive Officer, WYG commented:
"We are delighted to be joined by the Managing Director, Andy
Ross and the teams from North Associates and Taylor & Hardy,
who have built a strong reputation in the region and have recently
won the 2015 Service Business of the year award at the Cumbrian
News Group Business Awards. We have collaborated successfully with
them in the past on several projects and are confident that their
experience in residential, energy and infrastructure markets will
significantly strengthen our property asset management team. The
acquisition will expand our offering across Cumbria and the North,
in particular along Britain's Energy Coast.
"Following on from the acquisitions of Alliance Planning and FMW
Consulting, in September 2014 and June 2015 respectively, today's
news further demonstrates WYG's ability to deliver sustained growth
both organically and by acquisition, in line with our strategic
growth aspirations."
ENDS
WYG plc Tel: 0113 278 7111
Paul Hamer, Chief Executive Officer
Sean Cummins, Group Finance Director
MHP Communications Tel: 020 3128 8100
John Olsen / Katie Hunt / Ollie Hoare
N+1 Singer Tel: 020 7496 3000
Sandy Fraser / Nick Owen
WH Ireland Limited Tel: 020 7220 1666
Adrian Hadden / Liam Gribben
This information is provided by RNS
The company news service from the London Stock Exchange
END
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