16th Nov 2006 07:02
RPS Group PLC16 November 2006 RPS GROUP PLC("RPS" or "the Group") Acquisition of Harper Somers O'Sullivan Pty Ltd ("HSO") and Thonger SafetyAssociates ("TSA") Trading Update RPS announces the acquisition of Harper Somers O'Sullivan Pty Ltd, a leadingplanning, surveying and environmental consultancy in New South Wales, Australiaand Thonger Safety Associates which is based in the UK and provides health,safety and environmental services to the oil and gas industry on aninternational basis. HSO (www.hso.com.au) HSO was established in 1985 and provides planning, environmental and surveyingservices to the development industry. It is based in New South Wales andadvises both public and private sector clients in Newcastle and the HunterValley region. The long term development potential of this area, which has beenrecognised by Government agencies, has supported HSO's growth in recent yearsand underpins its future prospects. In the year ended 30 June 2006 HSO had revenues of A$4.25 million (£1.7 million)and profit before tax of A$1.0 million (£0.4 million). Net assets at 30 June2006 were A$0.9 million (£0.36 million). Consideration paid at completion was A$2.9 million (£1.17 million) in cash.Provided certain operational conditions are met a further A$0.97 million (£0.39million) will be paid in cash on each of the first three anniversaries of thetransaction. The maximum total consideration is A$5.8 million (£2.34 million). The three directors of HSO and approximately 40 staff will all be remaining withRPS. HSO will work alongside RPS's existing environmental planning business inPerth, Western Australia. It is anticipated that RPS's expanding activities inAustralia will be further developed with additional acquisitions. TSA (www.gsr-hse.com) TSA is a partnership and trades as Geophysical Safety Resources or "GSR". Itwas founded in 1988 and provides health, safety and environmental services tothe oil and gas industry. It is based in East Sussex and undertakes projects onan international basis. It operated in collaboration with ExplorationConsultants Ltd (ECL) before that business was acquired by RPS in September 2005and has subsequently continued to work with RPS Energy. It will now be fullyintegrated with RPS Energy. Rod Thonger, the managing partner, will remain withRPS. In the year ended 30 November 2005 TSA had revenues of £2.4 million and profitbefore tax of £0.4 million. Net assets at 30 November 2005 were £0.7 million.RPS has acquired the assets, certain liabilities and the goodwill of TSA for atotal consideration of approximately £2.5million. £1.2 million was paid in cashat completion. A further £0.4 million in cash will be paid and 91,912 new RPSshares will be issued to the vendors on each of the first and secondanniversaries of the transaction, subject to certain operational conditionsbeing met. Trading Update At the time of the announcement of the Interim results in August 2006 the RPSBoard indicated that it expected the Group would deliver a very satisfactoryresult for the year as a whole. Trading since then has confirmed thatexpectation and the Board consequently expects the results for the year endingDecember 2006 to be towards the upper end of current market expectations. Alan Hearne, Chief Executive of RPS commented: "We see an excellent opportunity to expand our Planning and Development businessin Australia. The acquisition of HSO gives us a valuable footprint in New SouthWales. The acquisition of TSA is a timely increase in our capability to providehealth, safety and environmental advice to the oil and gas industry. As hasbeen clear from recent press coverage, exploration and production activitycarries with it significant issues for our clients. Providing advice enablingthem to manage these issues better is a growing activity for us. "Group trading in the second half has been encouraging and we expect to be ableto announce very satisfactory results for the full year." 16 November 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. ENQUIRIESRPS Group plcDr Alan Hearne, Chief Executive Tel: 01235 863 206 College HillJustine Warren Tel: 020 7457 2020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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