6th Aug 2007 07:36
RPS Group PLC06 August 2007 RPS GROUP PLC("RPS" or "the Group") Acquisition of MetOcean Engineers Pty Ltd ("MetOcean") RPS announces the acquisition of MetOcean, a consultancy providing oceanographicand meteorological services in support of coastal and ocean engineering andenvironmental protection. MetOcean was established in 1974 and provides oceanographic and meteorologicalconsultancy services to the oil and gas, minerals and shipping industries, aswell as to Government agencies with an interest in marine activity. It is basedin Perth, Western Australia and undertakes projects on an international basis.MetOcean's skills fit well with the range of services that RPS currently offersits oil and gas clients and gives us scope to expand our client base as well asincreasing the range of consultancy services we offer to our existing clients. As a result of global warming, understanding and predicting oceanic conditionsin respect of wind, waves, tides and currents is becoming increasingly importantfor those with an interest in coastal assets, such as ports and harbours, aswell as those who transport oil and gas, minerals and other industrial rawmaterials and products by ship. MetOcean is a pioneer in the provision of suchdata and advice and, therefore, at the forefront of this increasingly importantscience. The business is being acquired from the 3 man MetOcean management team and fourexternal shareholders. The management team and staff are remaining with RPS andthe business will be integrated with RPS's existing activities in Perth. Itsresults will be included within our Environmental Management segment. In the year ended 30 June 2007 MetOcean had revenues of A$14.4 million (£6.1million) and profit before tax of A$4.8 million (£2.0 million). Net assets at 30June 2007 were A$7.4 million (£3.1 million). RPS is acquiring the equity of MetOcean for a maximum total consideration ofA$33.3 million (£14.0 million). Consideration paid at completion was A$12million (£5.1 million) settled in cash, together with 900,855 new RPS shares1with a total value of £3.0 million (A$7.2 million). Subject to certainoperational conditions being met, a further A$5.2 million (£2.2 million) in cashwill be paid on the first anniversary of the transaction. A$5.3 million (£2.2million) in cash on the second anniversary and a final payment of A$3.6 million(£1.5 million) on the third anniversary. Alan Hearne, Chief Executive of RPS commented: The acquisition of MetOcean is an excellent example of how RPS is developing itsmulti-disciplinary skills in the major growth areas of securing energy suppliesand managing climate change. MetOcean brings into the Group 50 highly qualifiedprofessionals with skills ranging across ocean and environmental engineering,electronics, computing and mathematics, numerical modelling, complex dataanalysis and project management. Their experience will integrate effectivelywith our existing activities in Perth and will supplement our growinginternational capability in climate change analysis. Note 1: Application will be made to the UK Listing Authority and to the LondonStock Exchange for listing of the new RPS shares to be issued as part of theconsideration. These new shares will rank equally with the existing ordinaryshares. 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. In order to assist in the reduction in the greenhouse gas emissions necessary toslow and eventually reverse global warming the staff of RPS have set themselvesthe task of reducing energy consumption by 5% each year using 2007 as the base.If successful we will halve our (per capita) energy use by 2020. 6 August 2007 ENQUIRIES RPS Group plcDr Alan Hearne, Chief Executive Tel: 01235 863 206Gary Young, Group Finance Director College HillJustine Warren Tel: 020 7457 2020Matthew Smallwood This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RPS.L