TIDMBEG
RNS Number : 4500Q
Begbies Traynor Group PLC
21 October 2019
21 October 2019
Begbies Traynor Group plc
Acquisition
Enhancing and widening our business and asset disposal
services
Begbies Traynor Group plc (the "group") today announces the
acquisition of the entire issued share capital of Ernest Wilsons
& Co Limited and of Ernest Wilson's (West Yorkshire) Limited,
which trade collectively as Ernest Wilson.
Ernest Wilson is a leading UK business transfer agent, providing
agency services for the sale of small businesses across the UK.
This long-established business, which is based in Leeds, operates
across a broad range of sectors ranging from food outlets and
convenience stores to care homes, restaurants and hotels. The
business has 24 employees and is led by an experienced and
well-regarded management team, who will join the group.
The acquisition enhances the group's existing transactional
support services provided by Eddisons, which include the sale of
commercial property, through agency and auction, together with
machinery and business asset disposals. It is also complementary to
the group's BTG Advisory and corporate finance offerings.
The acquisition is in line with our strategy to develop the
group through selective acquisitions to enhance our expertise and
service offering.
In the financial year ended 31 July 2019, Ernest Wilson reported
annual revenue of GBP2.2 million and pre-tax profits of GBP0.7
million, when reported on the same basis as the group. It had gross
assets (excluding cash at bank) of GBP0.5 million as at 31 July
2019.
Principal terms of the acquisition
The acquisition is for an initial consideration of GBP4 million,
to be satisfied by GBP3 million in cash from the group's existing
resources and through the issue of 1,163,874 new ordinary shares of
5 pence each in the group ("Ordinary Shares"). The acquisition is
on a cash free, debt free basis.
Under the terms of the acquisition, additional contingent
consideration of up to GBP1.63 million will be payable in line with
the achievement of financial targets in the three years following
completion, with full payment only payable in the event that
significant growth targets have been achieved. Any additional
consideration is calculated according to an agreed formula and is
payable in cash.
An application has been made for 1,163,874 Ordinary Shares to be
admitted to trading on AIM ("Admission") in part satisfaction of
the initial consideration. The new Ordinary Shares will rank pari
passu with the existing Ordinary Shares in the group and it is
expected that dealings in these new Ordinary Shares will commence
on 25 October 2019.
Following Admission, the group will have 127,334,741 Ordinary
Shares in issue. The group does not hold any shares in treasury
and, therefore, this figure may be used by shareholders as the
denominator for the calculation by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the group.
Ric Traynor, Executive Chairman of Begbies Traynor Group plc,
commented:
"The acquisition of Ernest Wilson is in line with our strategy
to develop the group, by enhancing our expertise and service
offering.
"Ernest Wilson is highly complementary to our existing services
and, by extending our transactional service offering, will enable
us to deliver a broader range of services to support business and
asset sales. Ernest Wilson has a long track record of delivering
both excellent service to its clients and strong financial
performance, which we expect to build upon as part of the broader
group."
Enquiries please contact:
Begbies Traynor Group plc 0161 837 1700
Ric Traynor - Executive Chairman
Nick Taylor - Group Finance Director
Canaccord Genuity Limited 020 7523 8350
(Nominated Adviser and Joint Broker)
David Tyrrell / Sunil Duggal
Shore Capital 020 7408 4090
(Joint Broker)
Mark Percy / Anita Ghanekar
MHP Communications 020 3128 8100
Reg Hoare / Katie Hunt / Pete Lambie / Florence Mayo
Information on Begbies Traynor Group can be accessed via the
Group's website at
www.begbies-traynorgroup.com
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END
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