Business
BRCS Acquisition
BRCS Acquisition.
About this update from Ceps Plc
[{"type":"text","content":"\n \nRNS Number : 6099F CEPS PLC 19 May 2017 \n\n \n19th May 2017\nCEPS PLC\n (\"CEPS\" or the \"Company\")\n \nAcquisition by Hickton Holdings Limited of BRCS (Building Control) Limited \n \n \nCEPS announces that its subsidiary company, Hickton Holdings Limited (\"Hickton\"), has entered into a contract to acquire 100 per cent of the issued share capital of BRCS (Building Control) Limited (\"BRCS\") for a maximum aggregate consideration of £1,300,000. The initial consideration is £608,375 with the balance of the consideration payable over the next two years, dependent on financial performance over the period. No equity investment from CEPS will be required to undertake the transaction, which was completed on 18th May 2017. \n \nThe vendors of BRCS, being, Simon Polley, Frank Robinson and Sue Polley, will remain in their existing roles within BRCS, and will be joined as directors by Tony Mobbs, the Managing Director of Hickton.\n \nBRCS is a leading provider of building control services nationally, as a Corporate Approved Inspector. The owners of BRCS are driven by improving standards across UK construction and it is expected that the service provision moving forward will be complementary to the Clerk of Works, quality assurance, role performed by Hickton. BRCS was established in 1996 and was one of the first three private sector Building Control bodies authorised by the Department of the Environment for non-residential projects, and is based in Chelmsford, Essex. \n \nBRCS is profitable, cash generative and has enjoyed consistent performance of sales and EBITDA over recent years. In the year ended 30 April 2016, BRCS's sales were £732,101, EBITDA was £256,961 and profit before taxation was £257,071. At 30 April 2016, net assets were £456,328, including cash of £286,193. Trading performance and net assets of BRCS in 2016/7 have been in line with management's expectations for the period. \n \nThe acquisition will be funded from Hickton's existing cash resources.\n \nThe acquisition of BRCS fits with Hickton's strategy of broadening its service offering into complementary areas, working with management who are committed to developing their business further. It is expected that both businesses will benefit from the relationship moving forward. The Dire...