Business
Acquisition of Richard Julian and Associates Ltd
Acquisition of Richard Julian and Associates Ltd.
About this update from Gateley (holdings) Plc
[{"type":"text","content":"\n\n20 July 2023\n \nGateley (Holdings) Plc\n \n(\"Gateley\" or the \"Group\")\n(AIM:GTLY) \n \nAcquisition of Richard Julian and Associates Limited\nand\nTotal Voting Rights\n \nGateley, the professional services group, is pleased to announce the acquisition of Richard Julian and Associates Limited, trading as RJA Consultants (\"RJA\"), for total consideration of not more than £6 million (the \"Acquisition\") including, subject to certain revenue targets being achieved, an earn out based on the EBITDA achieved in each twelve-month period expiring 31 March 2024 and 31 March 2025.\n \nBackground to RJA\n \nEstablished by founder and managing director, Richard Julian, RJA is a chartered surveying practice, providing quantity surveying and project management services across a variety of construction sectors. It specialises in the provision of these services to organisations that deliver affordable housing, a resilient sector which is underpinned by high levels of grants to support delivery of the Government's housing targets.\n \nRichard Julian and directors Steven Collin, Liza Julian, Hardeep Kooner and Chris Clubb, will continue to work as part of the RJA management team post Acquisition.\n \nThe company employs approximately 50 staff based in Nottingham and Leicester.\n \nIn the financial year ended 31 March 2023, RJA generated revenue of c.£3.9 million, corporatised profit before tax of c.£0.8 million and organic revenue growth of 65% against the prior year.\n \nAcquisition rationale\n \nRJA is a fast-growing business that complements the existing market leading expertise within Gateley Legal's residential development and construction teams. Its core market, which is affordable housing, is a buoyant sector and the deeper reach into that market adds further resilience to the Group's Property Platform.\n \nIn addition, RJA's service offerings align with expertise elsewhere on Gateley's Property Platform. In particular, its services to the UK property insurance market further strengthen Gateley Smithers Purslow and Gateley Vinden's market-leading positions in that sector.\n \nTerms of the Acquisition\n \nUnder the terms of the Acquisition agreement, Gateley will pay initial consideration of £3.93 million (the \"Initial Consideration...