Business
Acquisition of Swanke Hayden Connell Europe Ltd
Acquisition of Swanke Hayden Connell Europe Ltd.
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[{"type":"text","content":"\n \nRNS Number : 9246V Aukett Fitzroy Robinson Group PLC 19 December 2013 \n \n\nEmbargoed until 7:00am on Thursday 19 December 2013\n \n \n \nAukett Fitzroy Robinson Group Plc\n \nAcquisition of Swanke Hayden Connell Europe Ltd \n \n \n \nAukett Fitzroy Robinson Group Plc (\"AFR\" or \"Group\"), the international group of architects and interior designers, is pleased to announce that it has acquired the entire issued share capital of Swanke Hayden Connell Europe Ltd (\"SHCE\"), a major firm of architects and interior designers with offices in London, Moscow, Istanbul and Sheffield.\n \nThe total consideration for the acquisition is £1.58m comprising a cash payment from existing funds of £209,053 with the balance satisfied by the issue of 19,594,959 new ordinary shares in AFR at a price of 7.00 pence per share (\"Consideration Shares\"). The vendors of SHCE have agreed that for a period of 21 months from completion, subject to certain exceptions, they will not dispose of any of their Consideration Shares.\n \n \nKey highlights\n \nSHCE has around 95 staff in its European operations, which together with AFR's existing international network, creates an enlarged workforce in excess of 340 staff in eight countries.\n \nThe merger of studios in both London and Moscow will provide the opportunity for cost savings in property and associated overhead expenditure following co-location.\n \nEnlarged Group revenue will rise to £16m on a full year pro forma basis as a result of the acquisition, ahead of the Group's stated strategic revenue target of £15m by 2014.\n \nIn the year to 31 December 2012 SHCE made a pre-tax loss of £0.56m on revenue of £6.4m, though it has traded profitably during 2013. The Board of AFR expects this to continue into 2014. SHCE has virtually no debt.\n \nAll UK based vendors who are employees of SHCE will remain employed within the enlarged Group.\n \nThe enlarged Group will trade as \"Aukett Swanke\".\n \n \nBackground on SHCE\n \nSHCE is the European arm of Swanke Hayden Connell Architects (\"SHCA\") whose heritage dates back to 1906 when Walker & Gillette was founded in New York City. A branch office of SHCA was established in London in 1989 with a subsidiary in Istanbul in 1996. This was followed by the pu...