Begbies Traynor Group plc (the "Group"), the business recovery, financial advisory and property services consultancy, today announces the acquisition of the entire issued share capital of KRE (North East) Limited, a Newcastle based insolvency practice.
Ian Kings founded the business in the North East under the KRE branding in 2015. In the financial year ended 30 June 2018, the business reported annual revenue of £0.4 million and pre-tax profits of £0.1 million. It had gross assets of £0.3 million as at 30 June 2018.
The five strong team, including Ian Kings, will join our existing Newcastle insolvency practice, further strengthening our market-leading practice in the North East region.
The acquisition is for an initial consideration of £450,000 payable in cash from the Group's existing resources. Under the terms of the acquisition, additional contingent consideration of up to £150,000 in cash will become payable based on achieving targets for growing revenue in the 12 month period directly following completion.
The acquisition is on a cash free, debt free basis.
The acquisition is expected to be earnings enhancing, both initially and after any additional consideration is paid.
Ric Traynor, Executive Chairman of Begbies Traynor Group plc, commented:
"This acquisition is in line with our strategy to develop our market-leading business recovery practice, alongside our property services consultancy, and brings additional expertise and relationships to our existing operations in Newcastle and the broader North East region. Ian Kings and his team have built a strong reputation in the region and we look forward to supporting them to build on this successful track record as part of the broader Group."
Ric qualified with Arthur Andersen in 1984 and founded Begbies Traynor in 1989. Ric specialises in practice management and has considerable experience in financial turnaround and dispute resolution within professional practices.