Knowles sale price passes the £6m mark

Announcing its interim results the firm said expressions of interest had been received, which were "slightly in excess of 30p (per share)". This values the firm at £6.3m and follows a £5.25m bid from rival Systech that was thrown out by Knowles late last year.

Market sources claim acquisitive project management group Hill International and engineering group Mott MacDonald are potential suitors for the group.

The positive news regarding the bid follows disappointing figures for Knowles in the half year to 31 January.

The firm posted a £391,000 loss for the period on turnover of £14.7m. It put this result down to exceptional charges partially related to a restructuring of the UK business that led to redundancy costs of £155,000. It said the third quarter of the year had started well.

Our anticipation is that sales can be increased in this high margin business sector

Knowles statement

The firm said it had refocused its sales and marketing efforts in the UK on dispute advisory services. "Our anticipation is that sales can be increased in this high margin business sector." The group said the UK restructuring would lead to annual savings of £500,000.

It added that activity had increased in the Middle East although resources were a challenge if the business continued to grow at the present rate.

Chairman Roger Knowles said in a statement that it was with "some sadness" that he was standing down from his position at the end of September. This led to the group being up for sale as Knowles is to sell his 60% stake in the business.