Servoca PLC Acquisition of Classic Education Limited (8966C)
01 July 2016 - 4:00PM
UK Regulatory
TIDMSVCA
RNS Number : 8966C
Servoca PLC
01 July 2016
Servoca plc
("Servoca" or "the Group")
Acquisition of Classic Education Limited
Servoca, the AIM listed specialist recruitment and outsourcing
solutions provider, is pleased to announce the acquisition of
Classic Education Limited ("Classic Education"). The acquisition is
to be funded from existing cash resources and debt facilities and
the initial consideration is GBP1.2m.
In addition, Servoca will pay deferred consideration of up to
GBP1.9m, subject to Classic Education meeting certain profit
targets for the two years following acquisition.
Information on Classic Education
Classic Education has been established for 11 years and holds a
strong reputation for the delivery of quality Education Recruitment
services into its local markets. The business operates from a
single office in Gravesend, Kent. In the year ended 31 March 2016
unaudited pre-tax profit was just under GBP0.6m. In the opinion of
the Board, the adjusted sustainable pre-tax profit at constant
gross profit levels is circa GBP0.4m to GBP0.5m. At 31 March 2016,
unaudited management accounts showed Classic Education had net
assets of GBP0.4m.
The board of Servoca expect the acquisition to be earnings
enhancing in the year to 30 September 2017 with minimal impact in
the current year. Classic Education is a bolt-on to the Education
Recruitment business in a geographic area with high levels of
demand but where Servoca does not currently hold a local
presence.
Andy Church, CEO of Servoca commented,
"We are delighted that Classic Education is now part of Servoca.
This acquisition complements our existing branch network in
education and gives us a local presence in the Kent and South
London market, an area with significant demand for education
recruitment services. The acquisition of a long-established local
provider in this area increases our national branch network
coverage. In total we now have 15 UK locations and one overseas
office from which we service local schools. We look forward to
working with the staff and management that have helped build the
business into one of the leading providers in the area."
Enquiries
Servoca
Andy Church
Glenn Swaby 020 7747 3030
finnCap
Geoff Nash
Grant Bergman
Malar Velaigam (Broking) 020 7220 0500
Newgate
Box Huxford
Robyn McConnachie 020 7653 9850
This information is provided by RNS
The company news service from the London Stock Exchange
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