Renew Holdings PLC Acquisition (9293N)
01 November 2016 - 6:00PM
UK Regulatory
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RNS Number : 9293N
Renew Holdings PLC
01 November 2016
Renew Holdings plc
("Renew" or the "Group")
Acquisition
Renew (AIM: RNWH), the Engineering Services Group supporting UK
infrastructure, is pleased to announce the acquisition of Giffen
Holdings Limited ("Giffen"). Giffen, which is based in St Albans,
specialises in mechanical, electrical and power services within the
railway environment, working for both Network Rail and London
Underground as well as a select number of Train Operating
Companies. Giffen has four frameworks with Network Rail and six
frameworks with London Underground. Giffen is a direct delivery
organisation, employing 123 staff and skilled operatives. Following
the acquisition, Giffen, whose entire management team is remaining
with the company, will report into Amco Rail, Renew's rail
infrastructure business.
For the year ended 30 September 2016, Giffen is expected to
record revenue of approximately GBP22m and an adjusted profit
before taxation of GBP0.7m. The acquisition cost is GBP5m for the
whole of the issued share capital with a further GBP2m being
required to redeem loans from Giffen's current private equity
owners. The whole consideration will be paid from Renew's existing
cash resources. At completion, Giffen had a cash balance of less
than GBP75k.
By acquiring the complementary skills of Giffen, Amco Rail will
be able to offer an expanded range of services across the rail
network as well as creating opportunities for the Group to provide
services to London Underground.
Enquiries:
Renew Holdings plc Tel: 0113 281 4200
Paul Scott, Chief Executive
John Samuel, Group Finance
Director
Numis Securities Limited Tel: 020 7260 1000
Stuart Skinner/Kevin Cruikshank
(Nominated Adviser)
Michael Burke (Corporate
Broker)
Walbrook PR Tel: 020 7933 8780 or renew@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07584 391 303
About Renew Holdings plc
Engineering Services, which accounts for 85% of Group revenue
and 90% of operating profit, focuses on the key markets of Energy
(including Nuclear), Environmental and Infrastructure, which are
largely governed by regulation and benefit from non-discretionary
spend with long-term visibility of committed funding.
Specialist Building focuses on the High Quality Residential
market in London and the Home Counties.
For more information please visit the Renew Holdings plc
website: www.renewholdings.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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