Gateley has now spent the majority of the cash that it raised during its flotation after acquiring property consultancy business Hamer Associates for £2.05m.
Following Gateley’s listing on AIM last year the firm vowed to grow its business through acquiring existing businesses. The listing allowed Gateley to raise £30m, £25m of which was raised for the selling shareholders while £5m went to the firm.
The acquisition of Hamer Associates is the second to be carried out by the firm since it listed. In April the firm made its first acquisition when it purchased tax advisory business Capitus for £2.72m.
Hamer Associates was founded in 2000 by chairman Charles Hamer and managing director Jonathan Stott. The business specialises in providing advice relating to easements and wayleaves for utilities infrastructure, and compulsory purchase and compensation.
The property business will be renamed Gateley Hamer following the £2.05m acquisition. Gateley PLC will pay an initial consideration of £1m for the firm, which consists of a mix of cash and shares. A further £1m will also be paid after two years depending on the financial performance of the business.
The firm focuses on the removal of infrastructure developments such a pylons, cables and pipes from development sites. The business also advises landowners affected by projects such as High Speed 2, Crossrail 2 and Thames Tideway Tunnel.
Hamer Associates generated £1.2m of revenue last year and achieved £292,000 profit.
Gateley CEO Michael Ward said: “Hamer Associates is the second acquisition we’ve made post-flotation in our strategy to bring complementary and specialist services in to the group.
“Hamer’s first-class reputation and acknowledged expertise has generated an impressive list of both private and public-sector clients and we’re excited about the new opportunities the acquisition brings to both Hamer and the wider Gateley group.”
The firm still has funds to spare to acquire more businesses after it generated £11m of profit last year. The increased profit figure came at the same time as the firm grew its revenue by 10 per cent to £67.1m.
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