14th Feb 2019 10:16
LONDON (Alliance News) - Begbies Traynor Group PLC said Thursday it has acquired Newcastle-based KRE (North East) Ltd for GBP600,000.
"This acquisition is in line with our strategy to develop our market-leading business recovery practice, alongside our property services consultancy, and brings additional expertise and relationships to our existing operations in Newcastle and the broader North East region," Chair Ric Traynor said.
The UK-listed business recovery, financial advisory, and property services consultancy will pay an initial GBP450,000 in cash from existing resources for KRE.
It will additionally pay up to GBP150,000 further in cash upon KRE achieving revenue targets.
The acquisition, which is on a cash free and debt free basis, is expected to be earnings enhancing, both initially and after any additional consideration is paid. In the year ended June 30, KRE reported annual revenue of GBP400,000 and pretax profit of GBP100,000.
Shares in Begbies Traynor were up 0.4% higher at 62.67 pence each on Thursday.
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