Network Group Holdings plc, the specialist recruitment and business outsourcing group, is pleased to announce that it has today been admitted to trading on the London AIM market.
Network has recently acquired the whole of the issued share capitals of Network Ventures Limited and ESOS Group Limited. Network Ventures Limited was demerged in January 2004 from Pertemps Group Limited, believed to be the UKís largest independent recruitment group. ESOS Group Limited (ìESOSî) is a business process outsourcing company, also formerly part of Pertemps Group Limited. Following these acquisitions and a recent re-organisation, Network comprises over 20 specialist recruitment and outsourcing companies (ìNetwork Groupî).
On a pro-forma basis, the companies which now form Network Group, recorded a turnover of 52.1m and EBITDA* of 1.9m in the year to 31 December 2006.
Network is listing on AIM to provide potential access to capital to finance growth and to enable it to use its shares as consideration for acquisitions. In addition, and fundamental to the listing, this provides a mechanism for employee shareholders to convert shareholdings in a private company into publicly quoted shares. This will provide a means to further Networkís philosophy of shared equity participation among their entrepreneurial managers. The ability of entrepreneurial recruitment professionals to generate personal wealth by building a business within this structure has proved a compelling factor in attracting businesses to join the Network Group.
In the light of recent stock market volatility, and as the Company has no immediate significant capital requirement, the directors have chosen not to undertake an institutional fund raising at the time of admission to listing, but to reconsider this option at a suitable future time. Employees of the Network Group, employees of Pertemps group companies and other individuals known to the board have, however, expressed an interest in participating in a private fund raising, which will raise a maximum of 1.5m for the Company.
The specialist recruitment businesses within Network undertake business in most sectors of the UK economy. Networkís recruitment business is grouped into three sectors, professional, public and technical. In addition, ESOS provides support services to Networkís operating subsidiaries, parts of the Pertemps Group as well as a number of external organizations. The services provided by ESOS include, payroll, credit management, IT maintenance and web-based solutions.
The Board is focused on developing its existing diversified businesses, making acquisitions to widen the services currently provided and investing on a selective basis in start-up businesses which complement the Groupís operations.
Christopher Ross, chairman of Network Group said: ìOur high level of diversification means we are akin to a unit trust of recruitment companies spread across the UK economy. For our entrepreneurial managers, todayís listing provides evidence of the real wealth opportunities in building a successful recruitment business, and we believe this will attract other acquisition opportunities to Network Group in the future.î
The Companyís trading symbol is NGH.L and the ISIN is GB00B243R294.
Further information on the Company can be found on the Companyís website www.networkgroupholdings.co.uk
The Companyís Nominated Adviser and Broker is Daniel Stewart & Company plc.
Network Group Holdings plc has been admitted to trading on the London AIM market
Network has recently acquired the whole of the issued share capitals of Network Ventures Limited and ESOS Group Limited
