TP Group makes double acquisition
Greater Manchester-based TP Group, the AIM-listed technology and engineering group, is to make two acquisitions that it says will strengthen its offering into the defence, commercial and aerospace sectors.
The Dukinfield-based firm has bought ALS Technologies and Flexible Software Solutions for a combined initial consideration of £1.25m, with up to £1.5m payable on the delivery of profit related earn-out targets over the first 20 months from completion.
ALS, based in Wincanton, Somerset, provides systems engineering and assurance capability for mission support, flight control, combat systems and tactical information systems in the aerospace and defence markets.
It reported revenues of £4.3m and profits before tax of £500,000 in the financial year ended 30 September 2016. As at 30 September 2016, ALS had gross assets of £800,000.
FSS, also based in Wincanton, develops safety-critical software for the defence and commercial sectors.
It generated revenues of around £200,000 and was approximately breakeven in the year ended 31 December 2016. As at 31 December 2016, FSS had gross assets of approximately £100,000.
Steve Lafferty and Steve Bray, directors of both companies, will remain with the businesses and continue to lead activities and operations in Wincanton.
TP Group has funded the deal from its existing cash resources, on a debt free cash free basis.
Phil Cartmell, chief executive of TP Group, said: “The enlarged Group will bring critical mass to our services business and should stimulate growth in both ALS and FSS, as they benefit from greater market reach and presence delivered by TPG.”
