5th Apr 2019 09:41
LONDON (Alliance News) - Business recovery and property services consultancy Begbies Traynor PLC Group said Friday it has acquired surveyor BSMH Ltd for up to GBP3.0 million in a cash and shares deal.
Begbies will pay an initial consideration of GBP1.6 million for BSMH - which trades as Barker Storey Matthews - of which GBP1.1 million will be satisfied in cash and the remainder through the issue of 844,290 Begbies shares.
A further GBP1.4 million contingent consideration will be payable over the subsequent three years assuming BSMH achieves some "stretching" financial targets, Begbies explained. This extra consideration will be payable in cash.
For the year ended March 2018, BSMH generated GBP600,000 in pretax profit on revenue of GBP3.1 million.
For comparison, Begbies Traynor generated GBP2.3 million pretax profit on revenue of GBP52.4 million for the year ended April 2018.
Begbies Traynor said its new acquisition is one of the largest independent firms of chartered surveyors in eastern England with offices in Cambridge, Huntingdon, Peterborough and Bury St Edmunds and 38 employees.
"The acquisition of BSM is in line with our strategy to develop our property services division, by enhancing our expertise and geographical coverage," Begbies Traynor Executive Chair Ric Traynor said. "BSM is highly complementary in terms of its skills, and extends our reach into a new and important region. The firm has excellent relationships with a broad range of clients and a strong track record of growth and profitability."
Shares in Begbies were 0.1% lower at 62.41 pence on Friday.
Related Shares:
Begbies