Vantis, the AIM listed professional services and accountancy group, is pleased to announce the acquisition of the non-audit business of Brewer Higgins, an established general practice firm based in Marlow in Buckinghamshire.
The unaudited profit and loss account of Brewer Higgins shows that in the year ended 31 March 2007, Brewer Higgins generated profits attributable to partners of approximately £290,000 on turnover of approximately £770,000.
The acquisition will generate enhancing synergies. Brewer Higgins will extend Vantis' regional presence in the Thames Valley whilst Vantis will provide Brewer Higgins' clients with access to a broader and more specialist range of services.
The unaudited figures above include the audit business of Brewer Higgins, which is not being acquired by Vantis. The directors of Vantis estimate that the current annual non-audit turnover amounts to approximately £800,000, from which Vantis expects a continuing pre-tax contribution after partners' packages on an annualised basis of approximately £380,000 after accounting for certain cost savings arising from the integration process. The acquisition is expected to be earnings enhancing immediately.
The initial consideration for the acquisition will be £401,000, to be satisfied in cash at completion. The balance of the consideration is payable in cash and Vantis plc shares over the next three years and is dependent upon the performance and growth expectation of Brewer Higgins over that period. The Board of Vantis anticipates that the balance of the consideration will be approximately £727,000. The maximum total consideration for the acquisition is capped at £1.55 million.
The Board of Vantis has for some time been planning to implement an acquisition structure to embrace an investment opportunity for appropriate and relevant members of the team. This is part of a longer term progressive transition to a broader management equity structure. These investment opportunities are intended to be an ongoing tool to build the capital base of Vantis' key team members and
to support future acquisitions. This first investment will contribute towards the acquisition cost of Brewer Higgins.
Commenting on the acquisition Paul Jackson, Chief Executive of Vantis, said:
"We are delighted to welcome the Brewer Higgins team into the Vantis group. A successful and established accounting and business advisory services firm, Brewer Higgins brings business opportunities and an experienced, motivated team to Vantis enabling us to further strengthen our client base and team.
We look forward to offering Vantis' broader and more specialist range of services to Brewer Higgins' clients as they become an integral part of our development in the Thames Valley, and the cross-selling opportunities this acquisition will bring. "
Keith Brewer, Senior Partner at Brewer Higgins, commented:
"We are very excited at the prospect of joining Vantis. It will create many opportunities for us to enhance the service which we can offer our clients, to provide an environment to enable our team members to achieve their potential and to provide the satisfaction that comes from working alongside a group of like-minded, dedicated professionals."
For further information, please contact:
Paul Jackson, Chief Executive
Paul Ashton, Director
Vantis plc
020 7417 0417
Richard Darby/Suzanne Brocks/James Strong
Buchanan Communications
020 7466 5000
Notes to Editors
About Vantis plc
Vantis plc is the AIM listed UK top 13 accounting, tax and business advisory group that specialises in helping businesses every step of the way.
Accountancy, Taxation, Business Advice, Corporate Finance, Asset Finance, Forensic Accounting & Dispute Resolution, Business Recovery & Personal Insolvency Services, Restructuring & Turnaround Services, Outsourcing, Management Consultancy, Company Secretarial, Customs Duty Recovery & Advisory Services, Independent Financial Advice, High Net Worth Services and Sports Advisory Services & Solutions. The Vantis group now has over 1,000 staff operating from 17 locations throughout England.
For more information about Vantis, visit: www.vantisplc.com