CSG.L Regulatory News (CSG)

27 Mar 2008 10:40

Cyril Sweett Group PLC27 March 2008 Cyril Sweett Group plc ("Cyril Sweett" or "the Group") Acquisition of Burns Bridge Australia, Singapore and UAE Cyril Sweett, an international construction and property consultancy, is pleasedto announce that Cyril Sweett Australia Pty Limited, its wholly ownedsubsidiary, has agreed to acquire the entire share capital of Burns BridgeHoldings Pty Limited and its subsidiary companies ("Burns Bridge"), anAustralian based project management business. Burns Bridge operates inAustralia, Singapore and Abu Dhabi. The completion date for the acquisition iscurrently scheduled for 1 April 2008 and the directors of Cyril Sweettanticipate that the acquisition will be earnings enhancing in the financial yearending 31 March 2009. The initial consideration is to be satisfied by a cash payment of AUD 2.25million (£1.03 million) and the balance by the transfer of 493,534 ordinaryshares of 10 pence each in Cyril Sweett ("Ordinary Shares"). Based on CyrilSweett's closing share price on 25 March 2008 of 89.5 pence per Ordinary Share,the total initial consideration will be AUD 3.21 million (£1.47 million) whichrepresents a multiple of 2.6 times normalised Earnings before Interest and Tax(EBIT) for the twelve months to 30 June 2007. Deferred consideration will bepayable contingent upon the financial performance of Burns Bridge in the 12months to 30 June 2008 and the 12 months to 30 June 2009. The directors of CyrilSweett anticipate, based on current forecasts, that the deferred considerationwill be approximately AUD 7.80 million (£3.58 million) and that, in any event,it will not exceed AUD 11.79 million (£5.41 million). The total consideration is therefore expected to be approximately AUD 11.01million (£5.05 million) and in any event, will not exceed AUD 15.0 million(£6.88 million). The audited financial statements of Burns Bridge for the financial year ended 30June 2007 recorded turnover of AUD 15.4 million (£7.0 million), a profit onordinary activities before tax of AUD 1.5 million (£0.7 million) and net assetsof AUD 0.8 million (£0.4 million). Burns Bridge was established in 1986 and is headquartered in Melbourne,Australia. Its current board comprises four directors; Wes Gault, Ray Bongiornoand the two founders Phil Burns and Tony Bridge. They will all continue withBurns Bridge post-completion and will help implement the detailed integrationplan. Burns Bridge has a total of 65 employees based in Melbourne, Sydney,Brisbane, Singapore and Abu Dhabi. Burns Bridge's operations complement those of Cyril Sweett's in providingproject management advice in particular to the health and retail market. ThePrivate Finance Initiative (PFI) is in its infancy in the Australian market andCyril Sweett, having significant market expertise in delivering PFI technicaladvisory services, is well placed to export its sector skills and expertise tothis market. The Singapore office will provide Cyril Sweett with a strategic base to grow itsAsia-Pacific business. The combination of both businesses experience in theMiddle East market will create critical mass in order to compete moreeffectively in that market. Burns Bridge has a strong track record of project wins and repeat workspecialising in the provision of project management services to the health,hospitality, industrial, local Government and retail sectors. Burns Bridge has an impressive client list including Amity Group, BarclaysCapital, Coca-Cola Amatil, Coles Myer, Energy Australia, GPT Group, New SouthWales Health and Raffles Hotel. In line with Cyril Sweett's stated strategy to be a major internationalconsultancy, as outlined at the time of its flotation on AIM in October 2007,the acquisition will be a strong platform to assist with the growth of CyrilSweett's international business. The company will trade as Burns Bridge Sweett. Dean Webster, Chief Executive Officer, Cyril Sweett Group plc said: "We are successfully developing an extensive capability in the Middle East,India and Australia and are delighted to announce the acquisition of BurnsBridge, which will significantly expand our international operations. Webelieve the deal will create significant value for shareholders as the twobusinesses are highly complementary - both being project management specialistsin the health and retail sectors. We anticipate the acquisition will be earningsenhancing in the first full year. We remain confident of the Group delivering £100m of turnover by 2010." Philip Burns, Chairman of Burns Bridge said: "We are thrilled to be joining the Cyril Sweett Group. Importantly thebusinesses have similar values and internal structures and I speak for my entireteam when I say that we are very much looking forward to the next chapter ofgrowth for our business." - Ends - For further information and photography, call: Cyril Sweett Group plc Dean Webster 020 7061 9000 dean.webster@cyrilsweett.comChief Executive Officer Mike Kemsley 020 7061 9000 Chief 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 3113 Jonathon Brill Billy Clegg About Cyril Sweett • Cyril Sweett is a leading international construction and propertyconsultancy offering expertise in cost consultancy, project management, buildingsurveying and a comprehensive range of specialist consulting services. • Cyril Sweett floated on the AIM market of the London Stock Exchange inOctober 2007. • Founded in 1928, the Group has 22 offices throughout the UK, Ireland,France, Spain, the United Arab Emirates and India. • Global alliance partners include D G Jones and Partners (Middle East)Limited and Drees & Sommer AG. This information is provided by RNS The company news service from the London Stock Exchange