30 Oct 2015 07:00
30 October 2015
WYG plc
Acquisition of North Associates (Cumbria) Limited
WYG plc (WYG or 'the Group'), the global programme, project management and technical consultancy, today announces the acquisition of the entire issued share capital of North Associates (Cumbria) Limited ('North Associates') together with its subsidiary Taylor & Hardy Limited (together 'the acquisition'), for a maximum total consideration of £5.0m. This acquisition further establishes the Group's status as one of the largest property asset management and planning consultancy businesses in the UK. It also positions WYG to benefit from some of the anticipated £90bn of investment planned as part of the development of Britain's 'Energy Coast' in West Cumbria, where WYG also expects to use some of the planning skills developed as part of its work elsewhere in the nuclear sector.
Draft accounts of the acquired business for the year ended 31 July 2015, show turnover of £2.9m; profit before taxation (after adjusting for the pro-forma remuneration of its owner-directors) of £486k; and net assets of £359k. The acquisition is in line with WYG's strategy of growing its core, front-end consultancy offering and increasing the focus on high quality revenues. Taking into account North Associates' forward order book and available operating synergies, the Directors expect that the contribution to Group profits from the acquired business from the year to 31 March 2017 will be significantly higher than the historic level of profitability and materially earnings enhancing for the Group.
Operating from offices in Carlisle, North Associates provides specialist property asset management consultancy services which maximise the value of land and property for its clients, who include commercial developers, public sector bodies and regional landowners. Taylor & Hardy Limited is a well-established local planning consultancy which was acquired by North Associates in 2012.
The first £2.3m of the consideration is payable in cash on completion. A further £0.5m of cash consideration is due on the first anniversary of completion, subject to the collection of various debts and the conversion of the work in progress at the time of completion. The balance of up to £2.2m represents further deferred consideration, payment of which will be dependent upon the recovery of contingent fees over the three years following completion and will also be payable in cash.
Paul Hamer, Chief Executive Officer, WYG commented:
"We are delighted to be joined by the Managing Director, Andy Ross and the teams from North Associates and Taylor & Hardy, who have built a strong reputation in the region and have recently won the 2015 Service Business of the year award at the Cumbrian News Group Business Awards. We have collaborated successfully with them in the past on several projects and are confident that their experience in residential, energy and infrastructure markets will significantly strengthen our property asset management team. The acquisition will expand our offering across Cumbria and the North, in particular along Britain's Energy Coast.
"Following on from the acquisitions of Alliance Planning and FMW Consulting, in September 2014 and June 2015 respectively, today's news further demonstrates WYG's ability to deliver sustained growth both organically and by acquisition, in line with our strategic growth aspirations."
ENDS
WYG plc Tel: 0113 278 7111
Paul Hamer, Chief Executive Officer
Sean Cummins, Group Finance Director
MHP Communications Tel: 020 3128 8100
John Olsen / Katie Hunt / Ollie Hoare
N+1 Singer Tel: 020 7496 3000
Sandy Fraser / Nick Owen
WH Ireland Limited Tel: 020 7220 1666
Adrian Hadden / Liam Gribben