CPL Resources PLC Acquisition and Trading Update (1974H)
June 06 2017 - 1:00AM
UK Regulatory
TIDMCPS
RNS Number : 1974H
CPL Resources PLC
06 June 2017
Cpl announces the acquisition of RIG Healthcare
Group and Trading Update
Dublin, 6 June 2017 | Cpl Resources plc ("Cpl" or the
"Company"), Ireland's leading employment services group, is pleased
to announce that it has agreed to acquire 91% of RIG Healthcare
Group, a specialist healthcare recruiter in the UK. Cpl also
provides trading update for the full year to 30 June 2017.
Acquisition of RIG Healthcare Group
Cpl has agreed to acquire a 91% shareholding in RIG Healthcare
Group ("RIG") for a cash consideration of GBP8.1m. RIG Healthcare
Group, the trading name of RIG Locums Limited and RIG Medical
Recruit Limited, is a UK specialist healthcare recruiter with a
focus on market niches within the Locum Doctors and Allied Health
Professions and has a geographic footprint of five offices across
the UK.
In the year ended 31 December 2016 RIG Healthcare Group
generated sales of GBP53.5 million and normalised EBITDA of
GBP2.0m. Cpl expects the investment to be earnings enhancing from
the date of completion.
RIG supplies qualified medical professionals to the UK's
National Health Service (NHS) with a particular focus on
radiography, occupational therapy, pharmacy and physiotherapy.
Healthcare recruitment, staffing and training has long been one of
Cpl's most important sectors in Ireland & the UK and RIG will
complement the Company's existing portfolio of healthcare brands
which include: Cpl Healthcare, Kate Cowhig International Healthcare
Recruitment, Servisource Healthcare and Private Homecare. The
acquisition is Cpl's entry to the locum doctor market and enhances
the Company's operating presence in the UK, following the
acquisition of Clinical Professionals in September 2015.
The existing management team of Mr Affi Khan and Mr Rob Bryan
will remain with the business and are co-investing in RIG as part
of this transaction. Mr Khan, currently Managing Director of RIG
will assume the role of CEO of RIG. Mr Bryan has been appointed to
the role of Managing Director. Mr Khan and Mr Bryan are committed
to growing the RIG business as part of Cpl and have invested in a
9% shareholding in RIG alongside Cpl.
Trading Update
We announced our half year results on 26 January 2017 for the
six months to 31 December 2016. At that time, we reported growth in
revenues and profits in the group. During the second half, issues
relating to Brexit and changes to the US administration have caused
some uncertainty and, in turn, delays in our market, affecting some
of our services and sector mix. These events have been positive for
our temp and contractor businesses, but have had a negative impact
on permanent placements in some business sectors and markets.
For the year to 30 June 2017 we expect our revenues to be in
line with market expectations, and our profit before tax to be
slightly lower than current expectations.
Our strong track record of positive cash generation, gives the
Group the flexibility to invest in acquisitions while at the same
time maintaining strong capital returns. The Group cash reserves
post the acquisition consideration are in excess of EUR28
million.
We plan to announce our full year results on 7 September
2017.
Anne Heraty, CEO of Cpl said:
"We are very pleased to expand our presence in the UK and
welcome the highly talented professionals from RIG to Cpl. The
recruitment expertise and international talent pool of doctors and
healthcare professionals provided by RIG brings immediate strategic
value to Cpl's broad portfolio of innovative workforce solutions in
the healthcare sector. This acquisition also allows us enter into
doctor recruitment which will deliver real value for our
clients."
Mark Buckley, COO & Deputy CEO of Cpl said:
"We are very excited about the acquisition of RIG which has a
strong and growing business serving the NHS and the wider
healthcare sector in the UK. It delivers on our stated strategy of
growing our business across the healthcare, pharma and life science
sectors; and, within the UK market. The acquisition underscores our
ability to identify and acquire attractive and complementary
businesses which can accelerate growth under the Cpl brand."
Affi Khan, CEO of RIG said:
"Our vision is totally aligned to that of Cpl and our entire
management team is very excited about the growth potential this
acquisition offers RIG. This marks the next stage in the evolution
of our brand and we are delighted to be the part of the Cpl
family"
-END-
For further information, please contact:
Cpl Resources Nomad Investor Relations
Mark Buckley, Davy & Media
COO Ivan Murphy / FTI Consulting
Tel: +353-1-614-6000 Daragh O'Reilly Jonathan Neilan/Melanie
Tel: +353-1-679-6363 Farrell
Tel: +353-1-765-0806
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This information is provided by RNS
The company news service from the London Stock Exchange
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