26th Mar 2007 07:04
Northbridge Industrial Services PLC26 March 2007 FOR IMMEDIATE RELEASE 26 MARCH 2007 Northbridge Industrial Services Plc. ("Northbridge" or "The Company") ACQUISITION OF LOADBANK HIRE SERVICES Northbridge Industrial Services Plc. the industrial services and rental company,today announces the acquisition of the trade and assets of Loadbank HireServices ("LHS") a division of TGC International Ltd at a total cost of £900,000net of expenses. LHS operates from a depot in the south east of London and offers similarservices to those of Crestchic Limited, Northbridge's main subsidiary. Pro-formaunaudited turnover and profit before taxation for the year ended 31 March 2006were approximately £635,000 and £155,000 respectively. The assets of thebusiness acquired are predominantly load banks and cable for hire, together withservice and delivery vehicles, the unaudited gross value of which were £263,000at the 31 March 2005 Consideration for the business will be paid out of our existing cash resourcesand amounts to £900,000 in total, excluding any acquisition costs. £540,000 ispayable immediately and the remainder paid in instalments of £90,000 eachquarter for 12 months. The acquisition provides additional scale, increases the assets available forhire in the Crestchic business and strengthens our position in the London area.As almost 40% of Crestchic's services are in the South East of England, theaddition of a depot and experienced staff will lead to significant operationalbenefits and enable us to offer a better service to our existing customers inthe area. It is anticipated that the acquisition will make a positive contribution toprofits in 2007. About Northbridge. Northbridge Industrial Services was incorporated for the purpose of acquiringcompanies that hire and sell specialist industrial equipment supplying anon-cyclical customer base including utility companies, the public sector andthe oil and gas industries. In particular it will seek to acquire specialistbusinesses that have the potential for expansion into complete outsourcingproviders. For further information Northbridge Industrial Services Plc. Eric Hook, Chief Executive 07702 831110 Buchanan Communications Charles Ryland, James Strong 0207 466 5000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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