InterQuest acquires PeopleCo
01/03/2006
InterQuest Group Plc ('InterQuest' or 'the Group'), today announces the acquisition of PeopleCo Worldwide Limited for a total consideration of £5.4m and the appointment of Martyn Barrow, M.D of PeopleCo, to the Group’s operational management board.
The Board believes that the acquisition, the Group’s largest to date, will significantly enhance InterQuest’s niche presence in specialist IT contract and permanent recruitment services.
As the Group’s first acquisition in the North of England, PeopleCo, based in Harrogate, North Yorkshire will extend InterQuest’s geographical reach and will provide PeopleCo’s clients and candidates with a London office.
The business operates three divisions, which are focussed on ERP, software development and software testing.
In the year to 31 December 2005, PeopleCo generated turnover of £11.1m and audited profit before tax of £1m. Net assets were £1m at 31 December 2005.
Total consideration comprises £4.4m in cash and £1m in new InterQuest Group plc shares issued at 50 pence to Martyn Barrow, Emma Gray and Christine Moody.
Application has been made to the London Stock Exchange for 2.1m new ordinary shares in InterQuest Group Plc to be admitted to trading on AIM by 7th March 2006. The consideration shares will, upon issue rank pari passu with the Company’s existing issued ordinary shares and are subject to a lock in restriction which expires on 1st March 2007, and an orderly market provision for 12 months thereafter.
Gary Ashworth said: “We are delighted to welcome this high quality, well run, niche business to the InterQuest Group. We believe that this acquisition represents a major step towards InterQuest becoming a leading supplier of IT services in the UK.”
For further information please contact:
Gary Ashworth InterQuest Group Tel: 020 7025 0100
Ross Eades
Michael Joyce
Nick Fox M: Communications Tel: 020 7153 1530
Gemma Knowles
InterQuest Group is a recruitment business specialising in the provision of IT contractors, permanent staff and executive search and selection. InterQuest listed on AIM in May 2005.
The Group has grown principally by acquisition having bought six businesses which together provide IT staffing services to a range of blue chip clients, and currently employs 93 people.
Gary Ashworth, Chairman, founded the Group in October 2001 with the aim of developing a group of multi-branded IT staffing businesses, each focused on a specific niche area of the UK IT staffing market. In August 2003 Ross Eades joined as Chief Executive forming an experienced management team, with a proven ability to integrate acquisitions, to run larger businesses and a track record of creating shareholder value in the sector.
InterQuest is managed as a group of independently branded divisions, each with a different market or candidate skill set focus. Each division operates on a day-to-day basis with a large degree of autonomy whilst benefiting from the key central services of the group such as accounting, legal and IT support, as well as Group wide sales and management training programmes.
The Group currently consists of five operating divisions and an online database:
Genesis: Focused on financial institutions in the City of London. Its client base includes Fidelity Investment, Nomura International plc, Credit Suisse First Boston, and Hudson Global Resources Limited.
Insight: Focused on IT infrastructure and voice and data communications rather than a particular industry group. This is reflected by its client base which is made up of businesses in a variety of sectors, including Pfizer, Dixons, Citibank and Swiss Re Health & Life Limited.
InterQuest (UK): Focused on the retail sector, in particular fast moving consumer goods businesses. Its clients include John Lewis plc, Screwfix Direct, Helphire Group plc and Play.com. The Group took on the InterQuest name in 2002.
SBS: Focused on the public sector, in particular, central and local government offices. Its clients include the Office of the Deputy Prime Minister, FSA, and the London Borough of Camden.
FJB: Focused on the public sector, in particular the NHS and City based financial institutions.
ITmail: An online candidate database search service used by all of InterQuest's divisions. This database consists of approximately 300,000 CV's and is an additional support tool for all the Group's recruitment consultants.
The group’s turnover for the six months ended 30 June 2005 was £12.5 million with profit before tax of £576,009.