TIDMPTSG
RNS Number : 2166D
Premier Technical Services Grp PLC
05 July 2016
5 July 2016
Premier Technical Services Group PLC
("PTSG" or the "Group")
Acquisition of UK Dry Risers Limited and UK Dry Risers
Maintenance Limited
PTSG, the niche specialist services provider, is pleased to
announce that it has extended its service offering to encompass the
installation and maintenance of dry and wet riser systems through
the acquisitions described below. Dry or wet risers are generally
mandatory components of the fire-suppression systems designed into
most high-rise commercial and residential buildings in the UK and
are used to distribute water throughout all levels of the building
in the event of fire.
UK Dry Risers Limited ("UKDR")
UKDR, a specialist in the installation of dry and wet riser
systems, based in Bury, has been acquired for a maximum cash
consideration of GBP2.1m comprising an initial payment of GBP1.2m,
a fixed deferred payment of GBP50,000 payable on the first
anniversary of completion and a contingent payment of a maximum of
GBP0.86m also deferred for 12 months and subject to the business
achieving a stretching milestone profitability target during the
reference period.
Unaudited revenue of UKDR for the year ended 31 March 2016 was
GBP3.0m, delivering a profit before tax of GBP0.7m. Unaudited net
assets at the same date were GBP1.4m.
PTSG has inherited positive working capital balances of UKDR
totalling GBP1.6m at completion, including cash balances of
GBP0.8m. In addition to usual warranty protections, the acquisition
agreement allows for the offset of uncollected debtor balances
against the deferred consideration payments which might otherwise
fall due and payable.
UK Dry Risers Maintenance Limited ("UKDRM")
PTSG has also acquired UKDRM, a tester, repairer and maintainer
of dry and wet riser systems, based in Oldham, for a maximum
consideration of GBP3.5m, comprising an initial cash payment of
GBP1.8m, five fixed deferred payments of GBP60,000 payable on the
anniversary of completion and the balance of up to GBP1.4m in
contingent deferred payments over five years, subject to the
business achieving stretching and escalating milestone
profitability targets in each of those periods. The deferred
consideration can be paid in cash or shares at the sole option of
PTSG.
Unaudited revenue of UKDRM for the year ended 30 November 2015
was GBP1.1m, producing a profit before tax of GBP0.4m. Unaudited
net assets at the same date were GBP0.5m.
PTSG has inherited positive working capital balances of UKDRM
totalling GBP0.8m at completion, including cash balances of
GBP0.5m.
The initial consideration for the acquisitions has been funded
by draw-down against the newly increased debt facilities of
GBP14.0m in aggregate, recently arranged with HSBC. Following the
acquisitions and after netting off cash balances inherited with the
acquired businesses, core borrowings of PTSG stand at GBP9.4m.
Both businesses will be integrated into PTSG's Electrical
Services Division. Mike Charlton of UKDR and Daniel Hardman and
Claire Spencer-Hardman of UKDRM will remain with the Group and work
with PTSG's management team to grow and expand the acquired
businesses. A large percentage of both businesses' activity is
installation and recurring compliance testing and maintenance work,
which complements the existing market leading PTSG model.
Paul Teasdale, CEO of PTSG, said:
"We warmly welcome UKDR and UKDRM to the PTSG Group. Both
businesses are well established and respected in the UK and their
addition to the Group expands our service offering into new niche
markets. We look forward to working with Mike, Daniel and Claire
and their colleagues on growing the business and expanding the
Group's activities in these key areas.
The acquisitions are expected to be immediately earnings
enhancing for the Group. We were pleased to confirm at last month's
AGM that current trading within the existing Group is in line with
the Board's expectations and the Directors are confident that
PTSG's combination of a broad and loyal customer base with a high
level of regulatory and compliance-driven recurring revenues
provides a solid basis for continuing strong organic growth."
For further information, please contact:
PTSG +44 (0)1977 668 771
Paul Teasdale, Chief Executive Officer
N+1 Singer +44 (0)207 496 3000
Sandy Fraser
James White
Hudson Sandler +44 (0)207 796 4133
Cat Valentine
Katie Matthews
About PTSG - www.ptsg.co.uk
PTSG is the UK's leading provider of façade access and fall
arrest equipment services, lightning protection and electrical
testing, high-level cleaning and training solutions.
Operating through four divisions, Access & Safety,
Electrical Services, High Level Cleaning and Training Solutions,
the Group provides highly-engineered industrial products and
quality services and has a substantial presence in a number of
niche markets.
PTSG provides a central information service for its businesses
and champions the dissemination of key information and best
practice. PTSG unites its constituent businesses under one clear
identity, which supports smarter working and delivers top class
service to its customers.
Headquartered in Castleford, West Yorkshire, the Group employs
more than 350 people across 14 UK sites, who service more than
100,000 buildings across the whole of the UK for over 12,000
customers in a wide range of industries.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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