Frk Us Inc Etf Regulatory News (INCE)

6 Nov 2006 07:00

Work Group plc06 November 2006 6 November 2006 Work Group plc ("Work" or the "Company") Acquisition of The Recruitment Communications Company Ltd ("RCC HR") Work, the AIM-listed recruitment services group, is pleased to announce theacquisition of the entire issued share capital of RCC HR, a leading regionalprovider of recruitment communications services based in Knutsford, Cheshire,for a maximum consideration of up to £4.4 million (the "Acquisition"). RCC HR was established in 2002 by Beverly West and Derek Wynne, who will bothcontinue working in the enlarged group. RCC HR's clients include Boots, BentleyMotors and Allied Bakeries In the 12 months ended 31 March 2006, RCC HR reported audited net fee income("NFI") and earnings before interest and tax ("EBIT") of £1.5 million and £0.3million respectively. The net assets of RCC HR as at 31 March 2006 were £0.4million. Unaudited NFI and EBIT for the twelve months ended 30 September 2006were £1.9 million and £0.5 million respectively. Commenting on the Acquisition, Work Group Chairman, Simon Howard, said: "The Acquisition adds significantly to our operations in the North West and,added to the substantial Armstrong Craven business we have just a matter ofmiles away, gives us the opportunity to build a substantial hub operation in theregion. It is bang in line with our stated buy and build strategy, andconsiderably strengthens the national offering of our Work Communicationsdivision. We expect the Acquisition to be earnings enhancing." Beverly West, co-founder of RCC HR, commented: "We are very proud of what we have all created with RCC HR and have not takenthis decision lightly. Quite simply, the opportunity to join Work Group is afantastic one. We have admired Work and its people for some time and areattracted by the obvious synergies between our two businesses." Initial consideration for the Acquisition of £2.4 million has been satisfied asto £1.9 million in cash and as to £0.5 million by the issue to the vendors ofRCC HR of 625,000 new ordinary Work shares (the "New Ordinary Shares").Application has been made for the New Ordinary Shares to be admitted to tradingon the AIM Market of the London Stock Exchange. Each of the vendors receivingNew Ordinary Shares has given an undertaking to the Company that they will notdispose of any New Ordinary Shares before the expiry of ten working daysfollowing the announcement of Work's audited results for the financial yearending 31 December 2007. Additional performance-related consideration ("Additional Consideration") of upto £2.0 million may become payable in 2008, dependent on RCC HR's adjusted EBITin the 24 months ending 31 October 2007. The maximum additional considerationwill become payable if the RCC HR adjusted EBIT for the 24 months ending 31October 2007 is in excess of £1.3 million. Any Additional Consideration will bepayable in cash or new ordinary Work shares at the Company's option. Further enquiries: Work Group Tel: +44 (0)20 7492 0000 Simon Howard Michael Warren Fishburn Hedges Tel: +44 (0)20 7839 4321 Mark Tierney Andy Berry Michelle James Altium Tel: +44 (0)20 7484 4040 Garry Levin Tim Richardson About Work Group Work Group offers a range of bespoke resourcing solutions aiming to enableemployers to recruit and retain staff more effectively, thereby reducing theirtraditional reliance on third parties such as head-hunters and recruitmentfirms. Central to Work Group's approach is the concept of 'direct resourcing' -the establishment and maintenance of a direct relationship between employer andprospective employee. Direct resourcing provides an efficient and cost effectivealternative to traditional third party based recruitment strategies and is agrowing trend among UK employers. This information is provided by RNS The company news service from the London Stock Exchange