Howells, Rawlings and Ward Limited offer independent financial advice and transact life assurance, pensions and investment business. The acquisition will complement Ashcourt’s existing business and is in line with the company’s strategy of growth through acquisition as well as organically.
HR&W had gross fee income for its last financial year to 31st May 04 of £325,000 and net assets of £147,000.for the same period.
The consideration for the acquisition is £200,000 payable upon completion in cash, and a further amount of deferred consideration related to gross revenue generated over the next three years up to a maximum of £400,000 payable in the form of loan notes in Ashcourt. In addition, Ashcourt will pay for the net assets of HR&W as at completion satisfied by the issue of new Ashcourt ordinary shares to the vendors. Completion will take place upon confirmation of the transfer of the HR&W client base, which is expected to take place in some six to eight weeks.
Commenting on the acquisition, John Morton, Chief Executive of Ashcourt said: “It has been a remarkable year for us. The AIM listing in June coupled with the successful integration of Horder & Company which we acquired in July, has meant that we’re in the privileged position of having businesses approach us rather than having to look for potential acquisition targets. HR&W was one of these businesses and we we’re delighted to have made this acquisition.”