Acquisition

2nd Aug 2007 07:01

Servoca PLC02 August 2007 Servoca Plc ("Servoca" or "the Company") 2 August 2007 Acquisition of recruitment and training business Servoca Plc, which provides specialist outsourced solutions to police forces,local and national government and companies throughout the private sector, ispleased to announce that it has acquired, as a going concern, the business,trade and assets of a business trading as Windsor Recruitment ("Windsor"). Details on Windsor Windsor trades from six locations which are predominantly based in the north ofEngland. Windsor, has been acquired from the administrators, Vantis GroupLimited, and provides recruitment services in respect of qualified nurses, careassistants and social work professionals. In addition it also provides a rangeof training services and has a total staff of approximately 60. In the year to31 December 2006, Windsor made an unaudited loss before tax of approximately£47k on turnover of approximately £9.8m. Windsor's main clients are the NHS,Primary Care Trusts and private care providers. At 31 December 2006 Windsor hadunaudited net liabilities in excess of £2m. Servoca is only acquiring thebusiness, trade and assets of Windsor and thus will not be assuming anyliabilities. The Directors believe that the acquisition will be earnings enhancing and willcreate critical mass for the group's medical division by offering customers anational coverage that is largely focused on the public sector. Terms of the acquisition Servoca will pay an initial cash consideration of £1.37m, of which £1.16mrelates to the debtor book, and the remaining £212k is in respect of thebusiness, trade and other assets of Windsor. Performance related deferred consideration will be payable in cash for each ofthe two 12 month periods following the acquisition. This will be payable at therate of 1.875% on annual turnover billed to customers up to £8m in each of the12 month periods. No payment will be due in respect of any 12 month period whereannual turnover billed to customers falls below £5m. The maximum deferredconsideration payable is capped at £300k. Commenting on the acquisition, Darren Browne, Chief Executive, said: "We are delighted to have completed this acquisition since it provides ourmedical division with national coverage at an affordable entrance price andincreases the breadth of our recruitment business. The group's performance,since the creation of Servoca on 7 June 2007, is in line with Directorsexpectations and we are in the process of completing the reduction of centraladministrative costs as previously indicated in the circular issued toshareholders on 15 May 2007." Contacts: Servoca PlcDarren Browne 020 7747 3030Andrew Brundle 020 7747 3030 JMFinn Capital MarketsGeoff Nash 020 7600 1658 This information is provided by RNS The company news service from the London Stock Exchange

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