Begbies Traynor acquires commercial properties agent BSMH

Professional services consultancy Begbies Traynor acquired commercial properties agent BSMH for an initial consideration of £1.6m on Friday.

Begbies Traynor snapped up BSMH, which trades as Barker Storey Matthews, as part of an effort to progress its strategy of developing its property services business through selective acquisitions aimed at enhancing its expertise and geographical coverage.

The AIM-listed outfit will pay an initial consideration of £1.6m for BSMH, with £1.06m in cash coming from its existing resources and the remainder being satisfied through the issue of 844,290 new ordinary shares.

Under the terms of the acquisition, an additional contingent consideration of up to £1.4m will become payable subject to the achievement of stretching financial targets over the next three years.

Barker Storey Matthews, one of the largest independent firms of chartered surveyors in Eastern England with offices in Cambridge, Huntingdon, Peterborough and Bury St Edmunds, reported annual revenues of £3.1m and pre-tax profits of £600,000 in its trading year ended 31 March 2018.

Chairman Ric Traynor said: "The acquisition of BSM is in line with our strategy to develop our property services division, by enhancing our expertise and geographical coverage.

"BSM is highly complementary in terms of its skills, and extends our reach into a new and important region. The firm has excellent relationships with a broad range of clients and a strong track record of growth and profitability."

As of 1040 BST, Begbies Traynor shares had slipped just 0.14% to 62.41p.