CSG.L Regulatory News (CSG)

25 Mar 2008 09:40

Cyril Sweett Group PLC25 March 2008 25 March 2008 This replaces RNS 6671Q. Nisbet has 12 Partners and 88 staff providing quantity surveying, projectmanagement and health and safety services, not 12 Partners and 78 staff aspreviously reported. Cyril Sweett Group plc ("Cyril Sweett" or "the Group") Acquisition of Nisbet Cyril Sweett, the international construction and property consultancy, ispleased to announce that Cyril Sweett Limited its wholly owned subsidiary hasagreed to acquire the trade, assets and goodwill of Nisbet LLP ("Nisbet"),together with the entire share capital of Nisbet Project Safety Limited, for atotal consideration of £5.9m. It is anticipated that the acquisition will beearnings enhancing for the Group in its first full year of ownership. The initial consideration payable on completion on 1 April 2008 is £1.8m payablein cash and the allotment of 2,203,928 ordinary shares (the "Shares") of 10pence each in Cyril Sweett. At the date of the agreement the Shares were valuedat 92 pence each. Deferred consideration of £648k is payable in cash in the nextsix months and £1.3m will be paid over the next two years. On the secondanniversary of completion, if the value of each Share is less than £1 then anadjustment payment will be made. This adjustment payment will not exceed £180k. Nisbet has 12 Partners and 88 staff providing quantity surveying, projectmanagement and health and safety services. Nisbet's offices are located in theMidlands, London, the South and South-West of England, hence the acquisitionwill further strengthen Cyril Sweett's existing diverse regional office networkin the UK. Nisbet has an impressive track record on fee income and profits growth, and itsstrong order book provides high visibility of earnings. Nisbet leverages itsreputation to win work through referrals and grow its contracted order book. Itsresponsiveness to the changing business environment is reflected in Nisbet'sgrowing presence in the Education sector, where there is growingnon-discretionary Government spend. It is expected that this sector will accountfor approximately 40% of fee incomes for Nisbet in FY08. The acquisition willtherefore significantly strengthen the Group's exposure to the public sector asa whole. The audited financial statements of Nisbet LLP for the year ended 30 September2007 recorded turnover of £6.9m and normalised EBITDA, adjusted for (former)partners' remuneration contracted in the year following completion, of £1.1m.The initial consideration represents a multiple of 3.5 times normalised EBITDAfor the year to 30 September 2007. Nisbet has delivered over the period 2005 to2007, CAGR of revenue of 19%. Commenting on the acquisition, Dean Webster, Chief Executive Officer, CyrilSweett Group plc said: "We have always had a very high regard for Nisbet, particularly the quality ofits people, the quality of the work they do and the range of clients they serve.We are therefore delighted to welcome Nisbet's experienced management team andemployees to the Group. The quality of Nisbet's team is reflected in the strongtrack record of project wins, repeat work and referrals. Nisbet is especially strong in the public sector, particularly Education, andthis exposure will further strengthen our market share in this fast growing andattractive area. The acquisition complements our existing diverse geographicnetwork, and further enhances our ability to cross sell additional services to awidened client base. Our shared cultural values, of investment in our people anda strong organic growth model, will ensure a seamless integration with theGroup." Commenting on the acquisition, Martin, Hadnutt, Chairman of Nisbet LLP plc said: "We have experienced strong consistent organic growth in our key markets, andjoining Cyril Sweett will enable us to take our development to the next level.We are thrilled to have joined Cyril Sweett as we continue to strengthen ourpresence across our regional network." - Ends - For further information and photography, call: Cyril Sweett Group plc Dean Webster 020 7061 9000Chief Executive Officer dean.webster@cyrilsweett.com Mike Kemsley 020 7061 9000Chief Financial Officer mike.kemsley@cyrilsweett.com Caroline Covill, Head of Communications 020 7061 9102, 07968 215057 caroline.covill@cyrilsweett.com Brewin Dolphin Investment Banking 0845 270 8613 Andrew Kitchingman Sean Wyndham-Quin Financial Dynamics 020 7831 3113Jonathon BrillBilly Clegg About Cyril Sweett • Cyril Sweett is a leading international construction and property consultancy offering expertise in cost consultancy, project management, building surveying and a comprehensive range of specialist consulting services. • Cyril Sweett listed on the AIM market of the London Stock Exchange in October 2007. • Founded in 1928, the company has 18 offices throughout the UK, Ireland, France Dubai and Spain. Global alliances include D G Jones and Partners and Drees & Sommer AG. This information is provided by RNS The company news service from the London Stock Exchange