BQS Baqus Group

    RNS Number : 5215A
  Baqus Group PLC
  04 August 2008
   

    FOR RELEASE                                                 7.00 AM                                           04 August 2008


    BAQUS GROUP PLC
    ("Baqus" or "the Group")
    Baqus boosts its share of the education and public sector market through the acquisition of Sworn King for a maximum consideration of
�377,000.
    Baqus, the building consultancy and quantity surveying group, announces that it has today acquired Sworn King & Partners ("Sworn King")
for a maximum consideration of �377,000 of which �50,000 is deferred over a period of two years and �162,000 is subject to Sworn King
achieving certain profit targets over a three year period. The initial consideration has been satisfied through a cash payment and the issue
of 750,000 new ordinary shares in Baqus at 6p per share.
    Sworn King was established in the 1950's as Sworn Litchfield and Partners with an office in High Wycombe. The firm opened an Oxford
office in the early 1960's and changed the name to Sworn King & Partners. In the 1990's they consolidated into a single office situated on
the Oxford ring road. Projects vary in size from small domestic schemes to multi-million pound developments. The practice operates a Quality
Management system to ISO9001:2000 and has been certified for Quality Assurance since April 1998.
    In the year ended 31 March 2008 Sworn King reported unaudited turnover of �798,730 and a profit before tax and after notional partners'
remuneration of �129,682. Unaudited net assets were �155,592.
    Clive Sayer, the Baqus Chief Executive, commented:
    "Sworn King has an excellent reputation in the education and the public sector markets, which were two key areas we highlighted in our
expansion plans and I am delighted to welcome Sworn King to the Baqus Group.
    Following the share option agreement with Brian Hannaby & Associates, this is our first completed acquisition since floating on AIM. We
continue to have active discussions with a number of other practices with a view to them joining the Baqus Group."

    The Company will make application for the 750,000 new ordinary shares to be issued to be admitted to trading on AIM, and their admission
to AIM is expected to take effect on 8 August 2008.

    Following the admission of the 750,000 new ordinary shares, the total number of ordinary shares in issue, and therefore, the total
number of voting rights will be 113,250,000.  Shareholders should use this figure as the denominator by which to determine if they are
required to notify their interest in, or a change to their interest in, Baqus under the Disclosure and Transparency Rules.


    Contact:

    Baqus Group plc
    Clive Sayer (Chief Executive)                                                         07967 132 221
    Patrick Lineen (Finance Director)                                                    07818 034 452
    Seymour Pierce (Nominated Adviser and Broker)
    Mark Percy / Matthew Thomas                                                       020 7107 8000
    Cubitt Consulting (Financial Public Relations Advisers)
    Brian Coleman-Smith / James Verstringhe                                         020 7367 5100
      
    Background Note:

    Baqus Group

    Baqus was admitted to trading on AIM on the 14 December 2007, having raised �1.75 million through a placing of 17,500,000 Ordinary
Shares.

    The Group has been established to create a national building consultancy and quantity surveying group offering construction cost
consultancy, project management and building surveying services. The three founding firms work across a number of business sectors
including: residential, health, education, commercial, leisure, hospitality, affordable housing and conservation. Clients include commercial
companies, developers, local authorities, central government, NHS and Housing Associations. The group is seeking to expand into other
sectors including infrastructure, civil engineering and transportation.

    Baqus currently comprises three established building and quantity surveying consultancies: Boxall Sayer, Denley King and Fletcher
McNeill. The combined Group covers a broad geographical area with offices located in Canterbury, Chichester, Lichfield, Liverpool, London,
Manchester, Oxford, Poole, St Albans and Winchester.

    The Quantity Surveying Market, which is highly fragmented, is estimated to be worth �1.3 billion and is dominated by a small number of
major players. Baqus's Directors believe the market is ripe for consolidation and intend to pursue a strategy of acquiring small to medium
sized Quantity Surveying practices across the country. Once acquired, the practices will be developed to produce strong organic growth,
whilst capitalising on opportunities for synergies with the rest of the Group.

    Sworn King

    Sworn King has a strong reputation in the education sector which accounts for around 65% of turnover. Residential and commercial work is
also undertaken with an ongoing partnering agreement with a local housing association providing regular work.  

    The firm's core business is offering a traditional quantity surveying service to the construction industry, from initial feasibility and
costing, through to final accounts. Projects vary from �200,000 to over �15 million but a typical value would be in the region of �3
million. The bulk of the work is direct for the end client but there is other regular work for funders and banks providing financial
monitoring services.  

    The vast majority of work being undertaken is repeat business or referrals from other professional service firms. There is a strong
network numbering in the region of 20 local and regional architects who regularly refer work. There has been good revenue growth recently
and a strong order book for the current financial year and beyond.  



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