Acquisition of A+ Teachers Limited

Servoca plc

("Servoca" or "the Group")

Acquisition of A+ Teachers Limited

Servoca, the AIM listed specialist outsourcing and recruitment solutions provider, is pleased to announce the acquisition of A+ Teachers Limited ("A+ Teachers"). The acquisition is to be funded from existing cash resources and debt facilities and the initial consideration is £1.55m.

In addition, Servoca will pay deferred consideration of up to £2.13m, subject to A+ Teachers meeting certain profit targets for the two years following acquisition.

Information on A+ Teachers

A+ Teachers has been established for 12 years and holds a strong reputation for the delivery of quality Education Recruitment services into its local markets. The business operates from a single office in Berkhamsted, Hertfordshire. In the year ended 31 August 2014, reported pre-tax profit was £0.44m, the current year is expected to show pre-tax profit in excess of £0.50m. At 31 July 2015, unaudited management accounts showed A+ Teachers had net assets of £1.38m.

The board of Servoca expect the acquisition to be earnings enhancing in the year to 30 September 2016. A+ Teachers is a significant addition to the Education Recruitment business in a geographic area with high levels of demand but where Servoca does not currently hold a local presence.

Andy Church, CEO of Servoca commented,

"We are delighted that A+ Teachers is now part of Servoca. A+ Teachers fits well with our existing branch network in education and increases our supply into the Home Counties market. This is an area of the country that continues to evidence significant demand for Education Recruitment services. We look forward to working with the staff and management that have helped build the business into one of the leading providers in the area."

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