Acquisition

Galliford Try is pleased to announce that it has acquired AVRS Systems Limited (AVRS), a specialist mechanical, electrical, instrumentation, control and automation (MEICA) design and build contractor to the water and energy sectors for a total consideration of up to £7.0m.

Established in 1972, AVRS delivers specialist MEICA design and build solutions. In the water sector they have long term frameworks with key water sector clients as well as the Coal Authority and MoD, with operations being very closely aligned to Galliford Try's existing business. In the energy sector AVRS have long term client relationships providing in-house design, supply, installation and commissioning of MEICA. AVRS is an excellent fit with Galliford Try and the acquisition is a continuation of our previously disclosed strategy relating to the development of adjacent markets, as set out in our Sustainable Growth Strategy.

AVRS' capabilities are complementary to the operations of Galliford Try's expanding Environment business and will accelerate the growth of our asset optimisation and capital maintenance strategy. AVRS operates out of premises in Cumbria, Middlesborough and Warwickshire, and has c.95 employees.

The initial acquisition consideration of £4.5m will be financed from Galliford Try's existing cash resources.

Commenting on the acquisition, Bill Hocking, Chief Executive of Galliford Try, said:

"I am delighted to welcome AVRS to Galliford Try. We have said that we will continue to consider bolt-on acquisitions to accelerate our strategy and this acquisition increases our capabilities in the Environment business and bolsters the Group's capital maintenance credentials. AVRS brings highly complementary skills into the Group which will further advance our Sustainable Growth Strategy."

The acquisition of AVRS constitutes a Class 2 transaction for the purposes of the UK Financial Conduct Authority's Listing Rules.

For the year ended 30 September 2022, AVRS generated revenue of £7.9m and profit before tax of £1.3m. The gross assets of AVRS as at the same date were £3.8m.