9th Jun 2006 07:10
InterQuest Group PLC09 June 2006 9 June 2006 InterQuest acquires specialist public sector IT recruitment business InterQuest Group Plc ("Interquest" or "the Group"), the IT recruitmentspecialist, today announces the acquisition of Sand Resources Limited ("Sand")for a consideration of up to £5.2m in cash and shares and the appointment ofDavid Seear, M.D. of Sand, to the Group's Operational Management Board. The initial consideration comprises £1.39m in cash and £0.36m in new InterQuestshares issued at 50 pence. There is a maximum further consideration of £2.95m,payable as to 73.75% in cash and 26.25% in InterQuest shares provided thatcertain financial targets are achieved in the year to 31 May 2007. In addition,further amounts of £0.3m and £0.2m are payable as to 50% in cash and 50% inInterQuest shares provided that increased financial targets are achieved in yeartwo and year three. Sand is a specialist provider of IT recruitment services to the public sectorand in February this year was one of only thirteen companies awarded Catalistaccreditation by the Office of Government Commerce (OGC) to supply ITcontractors to public sector organisations. In the year to 31 May 2005, Sand generated turnover of £6.16m and auditedadjusted profit before tax of £323,000. Net assets were £213,000 at 31 May 2005. The Board believes that the acquisition, its third in twelve months, representsanother significant milestone in the Group's development into one of the UK'sleading providers of specialist IT recruitment services. Application has been made to the London Stock Exchange for 411,424 new ordinaryshares in InterQuest Group Plc to be admitted to trading on AIM by 16 June 2006.The consideration shares will, upon issue, rank pari passu with the Group'sexisting issued ordinary shares and are subject to a lock in restriction, whichexpires on 9 June 2007, and an orderly market provision for twelve monthsthereafter. Gary Ashworth, Chairman of InterQuest, said: "We are pleased to welcome this high quality, well run, niche business to theInterQuest Group. We believe that the inclusion of Sand Resources in our Groupbroadens our presence in the Central Government IT staffing arena and provides astrong platform for growth." For further information please contact: Gary Ashworth, InterQuest Group Tel: 020 7025 0100Ross EadesMichael Joyce Nick Fox, M:Communications Tel: 020 7153 1530Eleanor Williamson Notes to Editors: InterQuest Group is a recruitment business specialising in the provision of ITcontractors, permanent staff and executive search and selection. InterQuestlisted on AIM in May 2005. The Group has grown principally by acquisition having bought six businesses,which together provide IT staffing services to a range of blue chip clients, andcurrently employ 110 people. Gary Ashworth, Chairman, founded the Group in October 2001 with the aim ofdeveloping a group of multi-branded IT staffing businesses, each focused on aspecific niche area of the UK IT staffing market. In August 2003 Ross Eadesjoined as Chief Executive, forming an experienced management team with a provenability to integrate acquisitions and run larger businesses and a track recordof creating shareholder value in the sector. InterQuest is managed as a group of independently branded divisions, each with adifferent market or candidate skill set focus. Each division operates on aday-to-day basis with a large degree of autonomy whilst benefiting from the keycentral services of the group such as accounting, legal and IT support, as wellas Group wide sales and management training programmes. The Group currently consists of six operating divisions and an online database: PeopleCo: Focused on SAP, software development and software testing with majorclients including Accenture, Norwich Union, Cadbury Schweppes and Betfair. Genesis: Focused on financial institutions in the City of London. Its clientbase includes Fidelity Investment, Nomura International plc, Credit Suisse FirstBoston, and Hudson Global Resources Limited. Insight: Focused on IT infrastructure and voice and data communications ratherthan a particular industry group. This is reflected by its client base, which ismade up of businesses in a variety of sectors, including Pfizer, Dixons,Citibank and Swiss Re Health & Life Limited. InterQuest (UK): Focused on the retail sector, in particular fast movingconsumer goods businesses. Its clients include John Lewis plc, Screwfix Direct,Helphire Group plc and Play.com. The Group took on the InterQuest name in 2002. SBS: Focused on the public sector, in particular, central and local governmentoffices. Its clients include the Office of the Deputy Prime Minister, FSA, andthe London Borough of Camden. FJB: Focused on the public sector, in particular the NHS and City basedfinancial institutions. ITmail: An online candidate database search service used by all of InterQuest'sdivisions. This database consists of approximately 300,000 CVs and is anadditional support tool for all the Group's recruitment consultants. The Group's turnover for the year ended 31 December 2005 was £27.6m with profitbefore tax of £1.37m. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
InterQuest Group