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29 May 2008 07:00
Servoca Plc
("Servoca" or "the Company")
Acquisition of Education Business
Servoca Plc, which provides specialist outsourced and recruitment solutions to police forces, local and national government, healthcare and education sectors and to companies throughout the private sector, is pleased to announce that it has acquired an education business from Day To Day Teachers Limited ("the Acquisition").
Details on the Acquisition
Day To Day Teachers Limited trades from four branches based in the UK and supplies qualified teachers and classroom assistants on a supply or temporary basis. Servoca has acquired the business, trade, debtors and other assets relating to the four branches, which includes 12 staff. The Acquisition has been acquired from the administrators, Vantis Group Limited.
In the year to 31 January 2008, the four branches achieved unaudited turnover of
approximately £2.5 million and unaudited branch contributions before interest and tax of £0.2 million. Servoca is only acquiring the business, trade and assets of the four branches and thus will not be assuming any of Day to Day Teachers Limited's liabilities.
Terms of the Acquisition
Servoca will pay a cash consideration of up to £400,000, of which approximately £360,000 relates to the debtor book, and the remaining £40,000 is in respect of the business, trade and other assets of the Acquisition. The cash consideration will be met from existing resources.
The Directors believe that the acquisition will be earnings enhancing and will allow the Group to further develop operations in its education division. The Acquisition is the second within the education sector since the formation of Servoca in June 2007.
It is intended that the Acquisition will be run by the management of the Company’s recent acquisition, Academics Holdings Limited. The Acquisition will assist in the creation of a national branch network.
The Acquisition is deemed to be a related party transaction because Miles Davis, a director of Servoca, is also a director of Day To Day Teachers Limited. However, the Directors of Servoca (excluding Miles Davis) having consulted with FinnCap, consider that the terms of the acquisition are fair and reasonable insofar as its shareholders are concerned.
Contacts:
Servoca Plc
Darren Browne 020 7747 3030
FinnCap
Geoff Nash 020 7600 1658
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