Further re Acquisition, etc.
26 July 2000 - 5:00PM
UK Regulatory
RNS Number:4459O
Hacas Group PLC
26 July 2000
* Acquisition of Chapman Hendy for #2.3 million
* A major move towards establishing 'one stop shop'
* HACAS Chapman Hendy expected to generate fee income in
excess of #10 million
* Over #3.6 million cash resources to finance future
expansion
HACAS Group PLC announces it has completed acquisition of
Chapman Hendy Associates Ltd., a national local authority and
housing association consulting company, for #2.311m. The
consideration will be satisfied on completion by the issue of
2,098,524 new ordinary shares to a value of #1,512,949 and
cash of #798,051. Peter Chapman, the senior Director and
largest shareholder, will be joining the Group Board.
Chapman Hendy Associates has been an established consultancy
for over 12 years and employs 54 consultants and Associates.
The consultancy, with offices in London, Leeds, Glasgow and
Leamington Spa has a particular reputation for its expertise
in the transfer and improvement of local authority housing
stock to independent housing associations and local housing
companies. Turnover for the financial year ended 31 December
1999 was #3.9m (1998: #3.1m). Profit before tax was #338,000
(1998: #224,000) and after tax was #260,000 (1998: #175,000).
Net assets at 31 December 1999 were #845,338.
It is proposed that the business of Chapman Hendy will merge
with HACAS Consulting and will be renamed HACAS Chapman Hendy.
Both companies are enjoying growing demand for their services
and the combined organisation will have over 100 consultants
and associates and 20 support staff. The enlarged subsidiary
is expected to generate projected fee income in excess of #10m
compared to current levels of around #6m.
Julian Ashby, Group Chairman, said:
'This acquisition will strengthen the consultancy division by
making it the clear market leader within the social housing
sector. The benefits, once the business has been successfully
merged, will be:
* enhanced consultancy capacity
* a broader range of services
* a more comprehensive 'one stop shop' approach
* reduced overhead costs.
Peter Chapman, Senior Director of Chapman Hendy Associates,
said:
"This proposed merger emphasises the rapid growth of the
sector. The combined strength and experience of HACAS and
Chapman Hendy will enable an exceptionally comprehensive
consultancy service to be provided."
Derek Joseph, Managing Director of HACAS Group PLC, said:
"This acquisition reflects the strategic aims of the Group to
grow both by internal development and acquisition. Further
acquisitions are being considered to broaden the niche market
position of the Group. Following the acquisition, the Group
will have cash funds in excess of #3.6m to finance continued
expansion."
Background Note:
HACAS Group PLC is quoted on the AIM market and has a market
capitalisation of #18.5m.
HACAS provides technical consultancy services on social
housing, health and care to government departments, trade
bodies, local authorities, housing associations, financial
institutions and professional firms throughout the United
Kingdom. Published financial results are:
Six Months Six Months Year to 30
to 31 to 31 September
March 2000 March 1999 1999
TURNOVER 2,914,707 2,198,636 4,597,608
Profit on property
disposals 286,450 - 43,890
Rental income 27,778 77,767 140,015
Interest receivable 57,942 49,683 93,841
PROFIT BEFORE TAX 976,031 473,950 1,127,643
Profit after tax 756,616 326,507 749,402
Earnings per share
(basic) 2.93p 1.27p 2.90p
Earnings per share
(fully diluted) 2.77p 1.21p 2.76p
Dividends per share 0.55p 0.50p 1.10p
Contact information:
HACAS Group PLC Julian Ashby 020 7609 9491
Derek Joseph 020 7609 9491
Chapman Hendy Associates Peter Chapman 020 7831 7170
Binns & Co Brian Coleman Smith 020 7786 9600
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