Recruitment company Network Group Holdings has made three further acquisitions in the past two months taking the total to six so far this year.
Network has acquired 51% stakes in SSR Contract & Technical (SSRCT) and SSR General & Management (SSRGM), which specialise in security and related markets. Management retain the rest of the shares and they can swap them for Network shares in the future.
Network will pay up to £422,000 for each of the stakes, with £82,000 already paid for each. The rest of the payments will depend on performance in 2011 and 2012.
In the seven months to the end of 2010, SSRCT made a gross profit of £400,000 and SSRGM made a gross profit of £300,000.
Network bought interim and permanent placement firm Procurement People Recruitment (PPR) for £20,000 in cash and £20,000 in shares. Up to a further £40,000 may be payable out of gross profit in 2011. Gross profit was £221,000 in 2010.
PPR’s managing director has subscribed for a 24.9% stake in the company.
At 23.5p a share, Network is valued at £17.1m.
Download the August 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFAugust2011_23.pdf
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