8 Dec 2021 07:00
8 December 2021
Sureserve Group plc
("Sureserve" or the "Group")
Acquisition of CorEnergy Limited
Further expands Group's capabilities in sustainable energy solutions
Sureserve (AIM: SUR), the compliance and energy services Group, announces that it has acquired the entire issued share capital of CorEnergy Limited ("CorEnergy"), a business focused on delivering sustainable energy solutions for public and private sector organisations.
CorEnergy was established in 2014 to provide support to public and private sector organisations to assist to reduce energy, improve efficiency and save carbon by providing multi-disciplinary capabilities across a range of energy efficient products, including: LED lighting/controls, solar PV, EV charging, battery storage and renewable heating solutions. CorEnergy's key sectors include Education, Healthcare, Government, Manufacturing and Distribution. CorEnergy specialises in high quality consultancy and project delivery within complex environments and its services cover all phases of sustainability projects, from initial concept, feasibility and design, to installation, commissioning and lifetime aftercare support. Further information on CorEnergy can be found at: www.cor-energy.co.uk.
The maximum total consideration payable for CorEnergy is £7.5 million, with an initial £5.9 million payable on completion, to be satisfied through £2.9m in cash and the issue of 3,281,879 new ordinary shares of 10p each in Sureserve (the "Consideration Shares"). The Consideration Shares are being issued at an effective price of 89.4p each, being the mid-market closing price over the last 5 business days. Further deferred consideration of up to £1.6 million may be payable, split equally between cash and shares, depending on CorEnergy's full year results to December 2021. The transaction is to be achieved on a debt free / cash free basis. CorEnergy has grown through the successful delivery of a number significant contracts and in the year ending 31 December 2021 is expected to achieve revenues in excess of £6m and EBITA of £1m.
The Executive Directors of CorEnergy, Tom Griffin and Richard Budzynski. will remain with CorEnergy following the acquisition by Sureserve.
Commenting on the acquisition, Peter Smith, Chief Executive Officer, Sureserve Group plc said:
"We are absolutely delighted to welcome CorEnergy to the Sureserve Group.
"The acquisition of CorEnergy meets with our strategic objective of building Sureserve's capabilities in the Energy Services, delivering vital services to local and central Governments, energy companies, and homeowners. CorEnergy supplements our services and will be immediately earnings enhancing to the Group.
"Tom, Richard and the team will bring new skills and experience to Sureserve and will help us to deliver reliable, efficient and innovative energy solutions to our customers. We are excited about the type of projects they have delivered in the past and will continue to deliver in the future. This acquisition also marks an important step in our strategy to grow the company through both acquisitions and organically."
Tom Griffin, Director at CorEnergy Limited, said:
"CorEnergy has achieved strong momentum over recent years providing renewable energy and decarbonisation solutions within the fast-growing low carbon sector. As national agendas become increasingly focused on reducing emissions, the opportunity to join Sureserve Group presented a compelling opportunity to drive potential further growth, opening up complementary cross-selling opportunities and access to larger procurement frameworks. We have been highly impressed with the strategy and capabilities of the Sureserve team and we are delighted to have joined the Group. We very much look forward to the growth opportunities ahead."
Enquiries
Sureserve Group |
| |||
Nick Winks, Chairman | 07973 316544 | |||
Peter Smith, Chief Executive Officer and Chief Financial Officer | 07590 929431 | |||
|
| |||
Camarco (Financial Public Relations) |
| |||
Ginny Pulbrook | 020 3757 4992 | |||
Rosie Driscoll Toby Strong |
| |||
|
| |||
Shore Capital (Nominated Adviser and Broker) | ||||
| 020 7408 4090 | |||
|
| |||
|
| |||
Notes to editors
Sureserve is a leading compliance and energy services group that performs critical functions in homes, public and commercial buildings, with a focus on clients in the UK public sector and regulated markets. Services are delivered through two divisions: Compliance and Energy Services.
The Group was founded in 1988 and is headquartered in Dartford. It currently employs some 2,489 staff from 22 offices across the UK.