RPS announces the acquisition of Point Project Management Pty Ltd ("Point"), an Australian project management consultancy, for a maximum consideration of A$31.0 million (£17.6 million).
Founded in 2006, Point is headquartered in Canberra and has offices in 7 other major Australian cities. The company, which employs over 130 permanent staff, works primarily on projects to deliver new developments for its clients, from inception, through planning and design, to completed construction. It provides these services to the defence, transport, residential, retail, health and commercial property development industries.
The two director/vendors of the business are remaining with RPS, along with all other staff.
In the year to 30 June 2014, Point had revenues of A$32.5 million (£18.5 million) and profit before tax of A$6.2 million (£3.6 million), after adjustment for non-recurring items. Net assets at 30 June 2014 were A$1.6 million (£0.9 million). Gross assets at 30 June 2014 were A$10.3 million (£5.9 million).
RPS is acquiring the entire share capital of Point for a maximum total consideration of A$31.0 million (£17.6 million), all payable in cash. Consideration paid to the vendors at completion was A$18.8 million (£10.7 million). Subject to certain operational conditions being met, two further sums of A$6.1 million (£3.5 million) will be paid to the vendors on the first and second anniversaries of the transaction.
Alan Hearne, Chief Executive of RPS, commented:
"Point has an excellent reputation and track record, particularly in the Australian defence sector. Its skills will complement the services RPS currently provides in Australia and enable us further to rebalance our business towards the non-resources parts of the economy."
"We anticipate Point will add to AAP profit in the second half of 2014 and make a significant contribution in 2015. The 2014 contribution is likely to be tempered at Group level by the reduced activity we are seeing in our Energy business in the Middle East as a result of political unrest in Kurdistan/Iraq."
18 September 2014
|RPS Group plc|
|Dr Alan Hearne, Chief Executive||Tel: 01235 863 206|
|Gary Young, Group Finance Director|
|Justine Warren /Matthew Smallwood||Tel: 020 7457 2020|
RPS is an international consultancy providing advice upon the development of natural resources, land and property, the management of the natural and built environment and the health and safety of people. We have offices in the UK, Ireland, the Netherlands, Norway, the Americas and Australia/Asia Pacific and undertake projects in many other parts of the world. The Group is a constituent of both the FTSE 250 and FTSE 4 Good Indices.