LONDON (ShareCast) - (Sharecast News) - Energy provider Bilby acquired services outfit R Dunham on Thursday, as it continued to broaden its customer base and strengthening its presence in London and the South East.
Bilby will make an initial cash payment of £750,000 for R Dunham, which carries out electrical installation, services and maintenance work for local government organisations and the private sector, along with the issuance of 250,000 new ordinary shares of 10p each.

The vendor will also be entitled to a further cash consideration of as much as £500,000 if pre-tax profits for the year ended 31 December come in above £500,000.

The cash consideration will be funded from Bilby's existing debt facilities.

In its last trading year, R Dunham generated unaudited revenues of £3.8m, an EBITDA of £242,000, pre-tax profits of £158,439 and had net assets of £557,581.

On completion of the acquisition, Bilby will also repay chairman Mark Dunham's director's loan of approximately £250,000.

Chief executive David Ellingham, said: "We are delighted to announce the acquisition of R Dunham. This acquisition will further enhance Bilby's presence in our core market."

As of 0850 GMT, Bilby shares had inched forward 0.42% to 94.90p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE