AH Allen will be merged into Silverdell existing consulting network, Redhills, providing both additional capacity and access to a wider client base, particularly in Scotland and northern England.
Purchase price is £550,000 in cash, with further deferred consideration of up to £350,000 to be paid over two years depending on gross profit hitting last year’s level. AH Allen had 2010 revenues of £1.2m and profit before tax of £277,000. As at 31 December, it had net assets of £275,000, including £57,000 in cash.
Silverdell Group CEO Sean Nutley said: "AH Allen has a long-standing reputation for its environmental expertise and service quality and as such is a perfect fit for Redhills. This acquisition will extend the group's consulting geographic coverage and provide further scale to our operations. The deal is both value enhancing in the short term and a further step towards our strategic vision of becoming the UK's leading specialist environmental support services business."
In a trading update, Silverdell has also announced that group revenues for the six months to 31 March 2011 will be approximately £28m, slightly lower than last year. The company said it was impacted bad at the back end of 2010 and “a general reluctance by public sector clients to commit maintenance budgets”. Accordingly, EBITDA will be lower than the same period last year while pre-tax profit will be higher because acquired intangible assets have been fully amortised.
The company is upbeat about its prospects, saying: “The scale of opportunities in our specific areas of expertise such as specialist access and scaffolding, thermal insulation and asbestos remediation are particularly encouraging as nuclear plant decommissioning progresses and energy producers seek to upgrade their production facilities.”
Recent contract awards include further industrial service works at Pembroke Power Station, a £400k asbestos removal contract for an animal feed plant, approximately £800k of refurbishment contracts with major retailers and £600k of asbestos remediation contracts as part of the Building Schools for the Future programm.
A national framework contract with “a major broadcaster” has also been extended for a further three years, worth about £2.5m.
The company added that it had also won work in Canada, where there is a significant asbestos legacy.
Got a story? Email news@theconstructionindex.co.uk
