29th Jun 2006 07:02
White Young Green PLC29 June 2006 For immediate release 29 June 2006 White Young Green Plc ("WYG") Acquisition of Nolan Ryan Partnership White Young Green ("WYG"), consultant to the built, natural and socialenvironment, today announces the acquisition of the business and assets of NolanRyan Partnership ("Nolan Ryan"). Nolan Ryan is one of Ireland's largest indigenous cost management businessesproviding a wide range of professional services to clients across both thepublic and private sector in the Republic of Ireland. Services provided by thebusiness include: quantity surveying, project management, value engineering andvalue management. It employs 72 staff operating from five offices in Kilkenny,Waterford, Dublin, Cork and Limerick. The consideration payable by WYG is €14,000,000 (£9,669,176), being €8,680,000(£5,994,889) in cash and €5,320,000 (£3,674,287) satisfied by the issue of1,020,635 ordinary shares ("the Consideration Shares"). Application has beenmade for these Consideration Shares to be admitted to the Official List of theUK Listing Authority and to trading on the London Stock Exchange's market forlisted securities. Dealings are expected to commence on 4 July 2006. Inaddition, deferred consideration of €1,000,000 (£690,655) is payable in cashafter a period of 12 months in recognition of additional net assets retained inthe business. Further consideration of up to a maximum of €4,000,000(£2,762,622) (payable in ordinary shares and/or cash at WYG's option providedthat a minimum of 40% of such further consideration shall be satisfied in cash)is due if certain performance criteria are met in the first year of tradingunder WYG's ownership. For the year ended 31 December 2005 the profit before taxation of Nolan Ryan asextracted from the financial statements for that year was €2,267,981(£1,566,393). After adjustment for the expected annual employment costs of thecurrent partners, the adjusted profit before tax was €1,478,157 (£1,020,897) onturnover of €7,806,195 (£5,391,391). The gross assets of Nolan Ryan at 31December 2005 were €4,730,861 (£3,267,395) comprising fixed assets of €449,656(£310,557) and current assets of €4,281,205 (£2,956,837). Current liabilitiesas at 31 December 2005 were €1,795,272 (£1,239,914) and creditors falling dueafter one year were €79,295 (£54,766). All amounts in sterling are calculatedat an exchange rate of €1.4479 @ £1. All of the partners of Nolan Ryan have signed contracts of employment with theWYG group. The Board believes that the acquisition of Nolan Ryan will enable WYG togenerate incremental revenue growth and increase efficiency in Ireland as aconsequence of the following features: • Significantly strengthens WYG's management services business inthe Republic of Ireland. • Extends WYG's geographic coverage within a buoyant marketplace. • Complements WYG's existing operations with an excellentreputation and a strong client base. • Provides a platform for future growth through cross sellingopportunities and sector diversification. John Purvis, Chief Executive commented: "This acquisition is a significant step forward in the ongoing development ofWYG in Ireland. Nolan Ryan is one of Ireland's largest indigenous charteredquantity surveying businesses. It is a successful cost management consultancywhich brings with it a strong order book from an established portfolio ofclients across both the public and private sectors in the south of Ireland. Itenjoys a valued reputation for quality and innovation and will enable WYG toengage much more strategically with clients in the Republic of Ireland at a timewhen trading conditions are extremely favourable and indigenous cost consultancyservices are in short supply". WHITE YOUNG GREEN PLC Tel: 0113 278 7111John Purvis, Chief ExecutiveBob Hartley, Finance Director BUCHANAN COMMUNICATIONS Tel: 020 7466 5000Tim Anderson / Lisa Baderoon This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
WYG