Servoca PLC Acquisition of Classic Education Limited (8966C)

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RNS Number : 8966C

Servoca PLC

01 July 2016

Servoca plc

("Servoca" or "the Group")

Acquisition of Classic Education Limited

Servoca, the AIM listed specialist recruitment and outsourcing solutions provider, is pleased to announce the acquisition of Classic Education Limited ("Classic Education"). The acquisition is to be funded from existing cash resources and debt facilities and the initial consideration is GBP1.2m.

In addition, Servoca will pay deferred consideration of up to GBP1.9m, subject to Classic Education meeting certain profit targets for the two years following acquisition.

Information on Classic Education

Classic Education has been established for 11 years and holds a strong reputation for the delivery of quality Education Recruitment services into its local markets. The business operates from a single office in Gravesend, Kent. In the year ended 31 March 2016 unaudited pre-tax profit was just under GBP0.6m. In the opinion of the Board, the adjusted sustainable pre-tax profit at constant gross profit levels is circa GBP0.4m to GBP0.5m. At 31 March 2016, unaudited management accounts showed Classic Education had net assets of GBP0.4m.

The board of Servoca expect the acquisition to be earnings enhancing in the year to 30 September 2017 with minimal impact in the current year. Classic Education is a bolt-on to the Education Recruitment business in a geographic area with high levels of demand but where Servoca does not currently hold a local presence.

Andy Church, CEO of Servoca commented,

"We are delighted that Classic Education is now part of Servoca. This acquisition complements our existing branch network in education and gives us a local presence in the Kent and South London market, an area with significant demand for education recruitment services. The acquisition of a long-established local provider in this area increases our national branch network coverage. In total we now have 15 UK locations and one overseas office from which we service local schools. We look forward to working with the staff and management that have helped build the business into one of the leading providers in the area."

Enquiries

 
 Servoca 
  Andy Church 
  Glenn Swaby                 020 7747 3030 
 finnCap 
  Geoff Nash 
  Grant Bergman 
  Malar Velaigam (Broking)    020 7220 0500 
 Newgate 
  Box Huxford 
  Robyn McConnachie           020 7653 9850 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 01, 2016 02:00 ET (06:00 GMT)