Sureserve acquires sustainable energy solutions provider CorEnergy

Asset and energy support services group Sureserve said on Wednesday that it has acquired sustainable energy solutions provider CorEnergy in a deal worth as much as £7.5m.

Sureserve will make an initial £5.9m payment on completion of the acquisition, with £2.9m to be satisfied in cash and the remaining £3.0m to be covered via the issue of 3.28m new ordinary shares. The consideration shares will be issued at an effective price of 89.4p each.

The AIM-listed group stated a further deferred consideration of up to £1.6m may be payable, split equally between cash and shares, depending on CorEnergy's 2021 full-year results.

Sureserve highlighted that CorEnergy had grown through the "successful delivery" of a number of "significant contracts", with revenues for the year ending 31 December expected to be in excess of £6.0m, while underlying earnings for the same period were projected to be roughly £1.0m.

Chief executive Peter Smith said: "The acquisition of CorEnergy meets with our strategic objective of building Sureserve's capabilities in the energy services, delivering vital services to local and central Governments, energy companies, and homeowners. CorEnergy supplements our services and will be immediately earnings enhancing to the group.

"This acquisition also marks an important step in our strategy to grow the company through both acquisitions and organically."

As of 0900 GMT, Sureserve shares were up 3.75% at 96.48p.