Listed consultant Baqus has said the credit crunch will help its acquisition plans
Speaking after announcing its first full-year results since floating on the alternative investment market (AIM) in December, the group said the harsh economic climate would force small consultants to consider takeover offers.
Clive Sayer, Baqus’ chief executive, said: “Smaller companies will be finding life more difficult than in recent years and may decide they want to join a larger group. We’re in a strong position because there aren’t many companies looking to buy at the moment.”
The company has a warchest of £2.5m for acquisitions, £1.75m of which it raised from its flotation.
Roger Knowles, the chairman of Baqus, said the company hoped to make two acquisitions next year. “The idea is to get turnover to £20m in three to four years. We have to crack on and get a couple done every year – it would be disappointing to fall behind.”
Patrick Lineen, Baqus’ finance director, refused to rule out further fund-raising through AIM if a “really juicy” deal came along.
In the year to 30 June 2008, pre-tax profit was up 56% from £632,000 last year to £985,000. Turnover climbed 10% from £7m to £7.7m and the group’s order book stood at £9.6m.
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