HML Holdings plc Acquires Faraday Property Management Limited
HML Holdings plc, a leading provider of property management, insurance and ancillary services to residential property blocks, is pleased to announce that it has exchanged contracts for the acquisition of Faraday Property Management Limited, a property management business based in Holborn. The Company anticipates completion of the acquisition will occur on 1 April 2017.
HML will purchase the entire share capital of FPM for an initial consideration of £2.3m on a cash-free, debt-free basis. This consideration will be satisfied by the transfer of £2.7m in cash, offset against £0.5m of free cash in FPM, funded from existing cash resources, as well as the issue of £0.1m in HML ordinary shares of 1.5 pence ("Consideration Shares"), the price being the closing mid-market price on 31 March 2017. The transaction includes additional performance related payments of £0.6m which will be subject to the achievement of certain criteria and will be payable over 24 months from the acquisition date.
Faraday Property Management FPM was founded in 2006 to provide block management and surveying services in the central London geographical area. FPM, like HML, focuses on local private residential properties and manages over 4,000 residential units in 72 estates and blocks of flats. FPM produces annual revenues of £1.9m and normalised pre-tax earnings of £0.4m. It is expected that FPM will be immediately earnings enhancing. The board and senior management team of FPM are all remaining with the business which will continue to operate from their offices in Holborn.
Commenting on the acquisition, Rob Plumb, Chief Executive of HML, said:
"FPM has grown to be one of central London's most successful property management businesses. Its focus on high value properties and the excellent provision of building surveying services has enabled it to achieve an admirable and consistent return for its shareholders. We welcome all the Faraday team to HML group confident that the business will continue to prosper with a business strategy and culture that is entirely compatible with our own."