CEPS PLC BRCS Acquisition (6099F)
May 19 2017 - 1:00AM
UK Regulatory
TIDMCEPS
RNS Number : 6099F
CEPS PLC
19 May 2017
19(th) May 2017
CEPS PLC
("CEPS" or the "Company")
Acquisition by Hickton Holdings Limited of BRCS (Building
Control) Limited
CEPS announces that its subsidiary company, Hickton Holdings
Limited ("Hickton"), has entered into a contract to acquire 100 per
cent of the issued share capital of BRCS (Building Control) Limited
("BRCS") for a maximum aggregate consideration of GBP1,300,000. The
initial consideration is GBP608,375 with the balance of the
consideration payable over the next two years, dependent on
financial performance over the period. No equity investment from
CEPS will be required to undertake the transaction, which was
completed on 18(th) May 2017.
The vendors of BRCS, being, Simon Polley, Frank Robinson and Sue
Polley, will remain in their existing roles within BRCS, and will
be joined as directors by Tony Mobbs, the Managing Director of
Hickton.
BRCS is a leading provider of building control services
nationally, as a Corporate Approved Inspector. The owners of BRCS
are driven by improving standards across UK construction and it is
expected that the service provision moving forward will be
complementary to the Clerk of Works, quality assurance, role
performed by Hickton. BRCS was established in 1996 and was one of
the first three private sector Building Control bodies authorised
by the Department of the Environment for non-residential projects,
and is based in Chelmsford, Essex.
BRCS is profitable, cash generative and has enjoyed consistent
performance of sales and EBITDA over recent years. In the year
ended 30 April 2016, BRCS's sales were GBP732,101, EBITDA was
GBP256,961 and profit before taxation was GBP257,071. At 30 April
2016, net assets were GBP456,328, including cash of GBP286,193.
Trading performance and net assets of BRCS in 2016/7 have been in
line with management's expectations for the period.
The acquisition will be funded from Hickton's existing cash
resources.
The acquisition of BRCS fits with Hickton's strategy of
broadening its service offering into complementary areas, working
with management who are committed to developing their business
further. It is expected that both businesses will benefit from the
relationship moving forward. The Directors of CEPS believe that the
acquisition of BRCS by Hickton will be a valuable addition to the
CEPS group of companies.
The announcement contains inside information for the purposes of
Article 7 of EU Regulation 596/2014.
Enquiries
CEPS PLC
Vivien Langford, Group
FD +44 1225 483030
Cairn Financial Advisers
LLP
Tony Rawlinson / James
Caithie +44 20 7213 0880
This information is provided by RNS
The company news service from the London Stock Exchange
END
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