TIDMTPG
RNS Number : 1546Z
TP Group PLC
13 December 2017
13 December 2017
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
TP Group plc
("TP Group" or the "Company" or the "Group")
Acquisition of Polaris Consulting Holdings Ltd.
Acquisition extends the Group's capabilities, revenue and profit
streams
TP Group (AIM: TPG), the specialist services and engineering
group, is pleased to announce the acquisition of the entire issued
share capital of Polaris Consulting Holdings Ltd. ('Polaris') for
an initial consideration of GBP1.5 million, with a maximum
additional GBP2.0 million payable on delivery of profit related
earn-out targets over the first 21 months from completion.
The acquisition of Polaris is expected to be earnings accretive
to the Group in 2018(1) and will be funded from existing cash
resources, on a debt free cash free basis.
Polaris operates from offices in Fareham, Hampshire and Bristol
and delivers technical consultancy including operational analysis,
project controls and cost engineering services across the defence
and security sectors, with additional activity in energy and
transportation.
In late July, the Company raised approximately GBP20.8m (net of
expenses) primarily to fund acquisitions in the defence, aerospace
and industrial sectors and facilitate the achievement of the stated
revenue and EBITDA growth targets.
The acquisition of Polaris represents the first such acquisition
and is expected to deliver significant capability and near term
synergy benefits, which will:
-- significantly expand the Group's presence in cost engineering
and project controls initiatives, a strong growth area in defence
projects;
-- deliver new mathematical modelling and operational analysis
capability, offering significant support to customer operations and
procurement tasks;
-- introduce Polaris' innovative technology in autonomy and
machine learning which is being rapidly matured for use in military
and civil applications;
-- provide an opportunity to leverage Polaris' established
tier-1 prime customer base, alongside the Group's existing
relationships, and
-- add further back office capacity, including valuable
qualified and experienced resource in legal, commercial,
technology, project and resource management.
Polaris reported revenues of GBP3.5 million and profits before
tax of GBP0.4 million in the financial year ended 31 August 2017.
As at 31 August 2017, Polaris had gross assets of GBP1.2
million.
Carl Dalton and David Bangert, both directors of Polaris, will
remain with the business and continue to lead activities and
operations from their offices in Fareham.
TPG's Directors continue to review acquisition opportunities in
the defence, aerospace and industrial sectors since the fund raise.
Should any of these proceed to completion, TPG shareholders will be
notified accordingly. Following the recently well-documented
challenges within the UK Defence sector, the Directors recognise
the importance of ensuring that the funds raised in July are
deployed efficiently and effectively.
Phil Cartmell, Chief Executive Officer of TP Group
commented:
"We are delighted to welcome the Polaris team into the Group,
which further extends our reach in the defence and security
markets. The acquisition will enable the enlarged group to offer a
wider range of services and capabilities, further supporting our
broader customer base, alongside delivering greater levels of
operational expertise to our existing customers.
"We are also pleased that the existing directors, Carl and
David, will stay with the business post-acquisition to work closely
with us in capitalising upon a number of existing growth
initiatives currently being pursued the Group.
"I look forward to welcoming all of our new colleagues to the TP
Group team and to driving continued growth and value in the near
term."
1 This statement is not intended to constitute a profit forecast
for the current financial period or for any future period. In
addition, this statement should not be taken to mean that the
earnings per share of TP Group will necessarily match or exceed the
historic reported earnings per share of TP Group.
For further information, please contact:
TP Group plc Tel: 01753 285 810
Phil Cartmell, Chief
Executive Officer
Derren Stroud, Chief
Financial Officer
www.tpgroup.uk.com
Cenkos Tel: 020 7397 8980
Mark Connelly / Callum
Davidson
www.cenkos.com
Vigo Communications Tel: 020 7830 9701
Jeremy Garcia / Fiona
Henson / Emma Lord
www.vigocomms.com
Notes to Editors
TP Group designs and develops advanced technologies, engineers
complex equipment and systems, and provides support throughout
their operational life. The Company's shares have been traded on
AIM since July 2001.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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December 13, 2017 02:00 ET (07:00 GMT)
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