Acquisition of Phoenix Employment Services Limited
17.08.2010

Servoca Plc the provider of public sector resourcing and outsourced services, is pleased to announce that it has acquired, as a going concern, the business, trade and assets of Phoenix Employment Services Limited.

Phoenix, which trades from three locations in the Midlands and the Home Counties, is being acquired out of administration and provides outsourcing and recruitment services for the domiciliary care and nursing markets. In the year to 31 July 2009 Phoenix reported an audited profit before tax of approximately £0.1m on audited turnover of approximately £5.2m. Phoenix’s main clients are the NHS, Primary Care Trusts and private care providers. As Servoca is only acquiring the business, trade and assets of Phoenix, no liabilities will be assumed by the Company.

The Directors believe that the acquisition will be earnings enhancing and will allow Servoca to grow its service offering in the healthcare market and in particular the growing domiciliary care market.

Terms of the acquisition
Servoca will pay cash consideration of £0.99m, of which £0.78m relates to the debtor book, £0.17m for goodwill and the remaining £0.04m is in respect of the business, trade and other assets of Phoenix.

Commenting on the acquisition, Andy Church Chief Executive said:
We are delighted to have completed our first acquisition since the refinancing of the Group in 2009. The acquisition of Phoenix will allow Servoca to provide wider nursing and domiciliary care services to an expanding client base and markedly increase our presence in domiciliary care, which continues to show strong demand. We are pleased to welcome the staff and clients of Phoenix to the Servoca Group.