Business
Acquisition of Hickton Consultants Limited
Acquisition of Hickton Consultants Limited.
About this update from Ceps Plc
[{"type":"text","content":"\n \nRNS Number : 5402N CEPS PLC 01 February 2016 \n\n \n1 February 2016\nCEPS PLC\n (\"CEPS\" or the \"Company\")\n \nAcquisition of Hickton Consultants Limited \n \n \nCEPS announces that it has acquired 55 per cent. of the issued share capital of a newly incorporated company, RAM (1003) Limited (\"RAM\") for an investment of £670,000 (\"CEPS Acquisition\"), which has been formed to acquire 100 per cent. of Hickton Consultants Limited (\"Hickton\"), the acquisition of which was completed on 29 January 2016. The vendors of Hickton are Tony Hickton, the Chairman, members of his family and a number of former employees. Tony Hickton has not undertaken an executive role in the running the business for a number of years.\n \nHickton is a leading provider of Clerks of Works services to the construction industry, providing a quality assurance resource on larger value projects across the UK, with customers ranging from end-user clients, architects, project management firms and contractors. The business was established in 1991, and is based in Elsecar, South Yorkshire. \n \nHickton is profitable, cash generative and has enjoyed significant growth in sales and EBITDA over the last three years. In the year ended 28 February 2015, Hickton's sales were £2.69 million and EBITDA was £0.42 million. At 28 February 2015 net assets were £469,000, including a cash balance of £361,000. Trading performance and net assets of Hickton in 2015/6 are in line with management's expectations for the year to date. \n \nHickton has been acquired by RAM for a total consideration of £2.00 million, comprising initial consideration of £1.35 million and deferred consideration of £0.65 million payable over four years from completion in quarterly instalments.\n \nCEPS will subscribe £670,000 into RAM for 54,973 Ordinary Shares for £54,973, and £615,027 Shareholder Loan Notes, with an 8 per cent interest rate. \n \nTony Mobbs, who has been Managing Director of Hickton since 2012, will continue as Managing Director of Hickton and will be a director of RAM. Tony Mobbs was not a shareholder in Hickton prior to the acquisition by CEPS, but has invested as part of the transaction, and will receive 20,000 Ordinary Shares, being 20 per cent of the issued share capital of RAM. \n \nThe...