Hargreaves Serv Regulatory News (HSP)

3 Apr 2008 07:01

Hargreaves Services PLC03 April 2008 HARGREAVES SERVICES PLC (the "Group" or "Hargreaves") Acquisition of AJS Contracts Limited for £4.64 million Hargreaves Services plc (AIM: HSP), a leading supplier of support services tothe energy, mineral and waste sectors, today announces that it has acquired AJSContracts Limited ("AJS"), a profitable provider of niche general engineeringmaintenance services to the power generation industries, for a totalconsideration of £4.64 million (the "Acquisition"). Services provided by AJS include fabrication works, repairs and the provision ofskilled engineering labour to power stations. AJS has been acquired tocomplement Norec Ltd ("Norec"), Hargreaves' wholly owned industrial services andfacilities management company. The Acquisition will allow the Group to extendthe range of services that Hargreaves' Industrial Services Division provides toits power station customers. The consideration will be paid in cash, with £2.20 million paid on completionand two further deferred instalments of £1.22 million each, payable on the firstand second anniversaries of the Acquisition. In the 12 months preceding completion, AJS is expected to achieve a profitbefore tax of approximately £1.0 million on sales of approximately £6.0m. Netassets at completion is expected to be approximately £0.2m. Commenting on the acquisition of AJS, Gordon Banham, Hargreaves' Chief ExecutiveOfficer, said, "AJS is a quality engineering services business and is a highlycomplementary business to Norec. This acquisition will allow us to improve boththe range and quality of services provided to our power station customers." Enquiries: Hargreaves Services plc 0191 373 4485Gordon Banham, CEOIain Cockburn, Finance Director Buchanan Communications 0207 466 5000Diane Stewart, Catherine Breen Brewin Dolphin Investment Banking 0113 241 0187Andrew Kitchingman END This information is provided by RNS The company news service from the London Stock Exchange