HML Holdings plc Acquisition of The Guthrie Partnership
HML Holdings Plc (AIM: HMLH) a leading provider of property management, insurance and ancillary services to residential property blocks, announces that it has acquired the business and assets of The Guthrie Partnership ("TGP") for a total consideration of £0.8 million (the "Acquisition"). The Company will finance the Acquisition from its existing working capital resources.
TGP is an independent firm of Residential Managing Agents based in Knutsford Cheshire. The business, which was established by the Guthrie family over 10 years ago, specialises in the management of residential blocks and the provision of professional property services. TGP's current portfolio comprises over 4,000 units under management in over 180 blocks. The buildings are located mainly within the Cheshire and South Manchester area.
Alec Guthrie, TGP's founder and Managing Director, will continue to run the business. He and the team of property managers and support staff will become part of HML Andertons Limited, HML's wholly owned subsidiary. TGP's business will remain in its office in Knutsford and retain "The Guthrie Partnership" brand.
TGP had unaudited revenues of approximately £0.6 million and normalised profits of £80,000 for the year ended 31 December 2012. The Acquisition is expected to be immediately accretive and represents a viable opportunity for HML to cross sell its insurance and ancillary services. This latest acquisition forms part of HML's on-going expansion programme, providing the Company with a platform to expand its operations in the North West of England for the first time.
The consideration for the Acquisition will be satisfied in cash with £0.6 million payable on completion and the remaining £0.2 million deferred over one year and subject to client retention performance conditions.
Commenting on the acquisition, Robert Plumb, Chief Executive of HML, said: "This acquisition is a major step in fulfilling the growth and geographical expansion plans that we have for the group. TGP, whose service culture and operating strategy are closely aligned to HML's, will become a significant part of our operating network. We are delighted to welcome the TGP team to the HML group."