Latest News
Bilby Acquires UK Electrical Services Firm R. Dunham
Wednesday 05 December 2018

5 December 2018 - UK-based gas heating, electrical and building services provider Bilby plc (AIM: BILB.L) has acquired the entire issued share capital of electrical services firm R. Dunham limited, the company said.

Consideration is a maximum of GBP 1.4m (USD 1.79m), with cash together with the issuance of 250,000 new ordinary shares of 10 pence each that are subject to a twelve month lock up period.
 
The initial cash consideration will be GBP 750,000. The vendor will also be entitled to further cash consideration of up to GBP 500,000 (subject to achieving not less than GBP 500,000 pre tax profits for the year ending 31 December 2018) and additional cash consideration (capped at a maximum of GBP 150,000) calculated by reference to the utilisation of tax losses carried forward by R. Dunham.

This cash consideration will be funded from the company's existing debt facilities.

In the year to 31 December 2017 R. Dunham generated unaudited revenues of GBP 3.8m, EBITDA of GBP 242,000, profit before tax of GBP 158,439 and had net assets of GBP 557,581.

On completion of the acquisition, Bilby will be repaying Mark Dunham's director's loan (being approximately GBP 250,000).
 
The acquisition is another important step for Bilby enabling it to broaden its customer base and strengthen its presence in its core London and South East markets.
 
R. Dunham was founded in 2002 and carries out electrical installation, services and maintenance work for local government organisations and the private sector.

Its long-established client base is complementary to Bilby's including amongst others Sanctuary Housing, the London Boroughs of Barking and Havering and Poplar HARCA.

The business will continue to operate under its own R. Dunham brand within the Bilby group of companies. R. Dunham is led by Mark Dunham who has committed to stay with the business under the ownership of Bilby.
 
R. Dunham's geographical focus, strict operational disciplines and service offer enables it to generate margins equivalent to Bilby's.

The Bilby board anticipate that there will be clear opportunities to cross-sell a wider range of services from its Group companies to the clients of R. Dunham.

This meets the ever-increasing market trend of large scale organisations looking to a single source supplier for a range of facility management services.
 
Application has been made for the 250,000 ordinary shares, which will rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM and it is expected that this will take place on or around 5 December 2018.

Following the Admission of the 250,000 ordinary shares, Bilby will have 40,540,027 ordinary shares in issue which will also represent the total number of voting rights in the company.

Bilby is a gas heating, electrical and building services provider to local authority organisations and housing associations. It has a specific geographic focus on the London and the South East markets.
Details
Date Published: 05/12/2018
Target: R. Dunham
Country: UK
Deal Size: 1.79m (USD)
Sector: Construction/Real Estate
Type: LBO
Financing: Cash and Stock
Status: Closed
Vendor:
Buyer: Bilby plc
Comment:


Options