19th Jul 2006 07:01
RPS Group PLC19 July 2006 RPS GROUP PLC("RPS" or "the Group") Acquisition of Burks Green and Partners Ltd ("Burks Green" or "the Company") RPS announces the acquisition of Basicshare Ltd and its subsidiary companiesMartindale Holdings Ltd and Burks Green and Partners Limited, one of the UK'sleading integrated architectural and engineering practices, for a maximumconsideration of £21.2 million. Burks Green (www.burksgreen.com) Burks Green provides architectural and engineering advice to the property andinfrastructure development sectors in the UK and Ireland and has recentlyestablished a presence in Poland. The Company has built an excellent reputation for the design of operationalbuildings, particularly in the distribution, manufacturing, retail and transportsectors. The business operates from its main office in Newark, Nottinghamshire and asmall base in Warsaw. It currently employs around 200 staff. Recent clientsinclude: Birmingham, Manchester and Dublin Airport authorities, Sainsbury's,Asda, Argos, DSG (formerly Dixons), Prologis, Gazeley, Siemens Transportation,Bombardier and the UK Department of Transport. The Architects' Journal has recently identified Burks Green as the marketleading industrial architect in the UK and Construction News has recentlyidentified Burks Green as one of the UK's leading integrated architectural andengineering firm. Financials In the year ended March 2006 Burks Green had revenues of £13.6 million andprofit before tax of £3.6 million. Net assets at 31 March 2006 were £2.7million. Consideration The consideration paid at completion was £9.9 million in cash and 1.47 millionnew RPS shares valued at £3.2 million. In addition guaranteed loan notes to thevalue of £8.1 million were issued. £3.0 million of these can be redeemed on thefirst anniversary of completion, £2.4 million on the second anniversary and thebalance of £2.7 million on the third anniversary, provided certain operationalconditions are met. The shares issued at completion must be held by the vendorsfor at least 12 months from completion. RPS Planning and Development Burks Green will be integrated with the Group's Planning and Developmentdivision. All the Burks Green directors will be staying with the Group and willbecome part of the Planning and Development management structure in the UK. The skills brought to RPS by Burks Green will supplement our existing resourcesin architecture and development engineering creating the leading capability inthe UK and one of the largest in Europe. As a result, our ability to advise uponthe increasingly wide range of issues related to planning and designingsustainable communities will improve significantly. Coupled with our marketleading planning and environmental skills this will ensure we remain keyadvisors in UK property development. The Burks Green business in Warsaw givesRPS the opportunity to examine the market for our full range of services inPoland. 2006 Interim Results The Group's interim results for 2006 will be announced on 8 August 2006. Ananalysts presentation will be held at 8.30am on that day at the offices ofCollege Hill. The good trading indicated in the Group's AGM statement (25 May2006) has continued and the Board currently expects to announce strong firsthalf results. Alan Hearne, CEO of RPS, commented:"The acquisition of Burks Green is excellent news for RPS. It augments the Groupskills with expertise much in demand and which will ensure we remain positionedas market leaders in the Planning and Development sector. The well respectedDirectors of the Company will all be remaining with the business. "We anticipate announcing strong results for the first half of 2006. Burks Greenwill help us sustain both our operating margins and growth." 19 July 2006 RPS is an international consultancy providing advice upon the development ofnatural resources, land and property, the management of the environment and thehealth and safety of people. We trade in the UK, Ireland, the Netherlands,North America and Australia and undertake projects in many other parts of theworld. ENQUIRIES Today tel: 020 7457 2020 Thereafter tel: 01235 863 206RPS Group plcDr Alan Hearne, Chief Executive College Hill Tel: 020 7457 2020Justine WarrenMatthew Smallwood This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RPS.L