We believe the acquisition of Rishworth will be both meaningfully earnings enhancing, reflecting a post-tax purchase multiple of 6.6x, and virtually self funding, given the inherited cash of £7m on the balance sheet. We increase our FY17 earnings forecast by 13%. Whilst the recruitment sector is naturally sensitive to confidence levels in the UK economy, we note the UK now accounts for just 21% of Arden’s forecast FY17 EBIT and the global bias to Technical and IT recruitment shoul
05 Jul 2016
Rishworth acquisition; FY17 EPS enhancement +13% E
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Rishworth acquisition; FY17 EPS enhancement +13% E
Empresaria Group plc (EMR:LON) | 36.5 0 0.0% | Mkt Cap: 18.2m
- Published:
05 Jul 2016 -
Author:
Ben Thefaut -
Pages:
4
We believe the acquisition of Rishworth will be both meaningfully earnings enhancing, reflecting a post-tax purchase multiple of 6.6x, and virtually self funding, given the inherited cash of £7m on the balance sheet. We increase our FY17 earnings forecast by 13%. Whilst the recruitment sector is naturally sensitive to confidence levels in the UK economy, we note the UK now accounts for just 21% of Arden’s forecast FY17 EBIT and the global bias to Technical and IT recruitment shoul