RPS Group PLC (LSE: RPS) said it has entered into an agreement to acquire Conics, a major planning, surveying and environmental consultancy headquartered in Brisbane, Australia, for a maximum £31.3 million in cash. The transaction is expected to complete on July 30 2009.
The environment, property and health & safety consultancy said the acquisition will complement its existing strength in Western Australia with considerable presence in Queensland, which will also assist RPS create strong market positions in New South Wales and Victoria.
Conics was formed in 2005 by the merger of PMM Group and C and B Group; these Queensland based companies specialised in planning and development and environmental management, including land surveying. Subsequent to that merger Conics has become a dominant force in its markets in Queensland from a network of offices in all major cities in the state.
The business currently employs approximately 570 staff, 82 of whom are the company's shareholders and from whom the business is being purchased.
In the financial year ended 30 June 2008 Conics had revenues of A$78.8 million and pretax profit of A$11.5 million.
RPS also commented on trading ahead of reporting interim results, saying it expects them to be in line with market expectations and the interim dividend will be increased at a rate similar to previous years.
Continuing economic recessions around the world mean its private sector clients remain cautious and cost conscious when making specific project investment decisions. As a result, RPS is still experiencing pricing pressure and delays to projects in a number of its markets.
“Our balance sheet remains strong, with net bank debt being significantly reduced from the £27.0 million reported in the IMS published on April 30,” it added.www.proactiveinvestors.com.au
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