REG - Team PLC - Acquisition of HBFS

TeamAnnouncement

27/12/2023 07:00

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RNS Number : 8468X  Team PLC  27 December 2023

27 December 2023

 

("TEAM", the "Company" or the "Group")

 

 Acquisition of HBFS

and

Update on the acquisition of Thornton Associates Limited ("Thornton")

Third Jersey Based Financial Planning Business to be Acquired by TEAM

TEAM plc (AIM: TEAM), the wealth, asset management and complementary financial
services group, is pleased to announce that it has exchanged contracts to
acquire the entire issued share capital of Homebuyer Financial Services
Limited ("HBFS"), a Jersey based financial planning business, for total
consideration of £2.4 million in cash.

 

HBFS overview

·   Founded in 1988, HBFS is an established Jersey based financial planning
business advising local clients on investments, pensions and protection
policies .

·   HBFS has assets under advice of approximately £135 million with over
1,000 clients serviced by 10 full time employees.

·   In addition, HBFS offers savings and retirement planning, insurance
cover and mortgage and loan services to its Jersey client base.

·   In the year ended 31 January 2023, HBFS generated audited revenues of
approximately £1.3 million with a loss before tax of £15,000 and as at 31
January 2023 had audited gross assets of £838,000.

Consideration

The total consideration of £2.4 million is payable in cash on completion.
HBFS will be acquired with surplus tangible net assets of £380,000,
equivalent to the required level of regulatory capital for the business.

Conditions To Completion

The acquisition is subject to various conditions, including regulatory
approval from the Jersey Financial Services Commission and a fundraising by
the Company which is expected to occur in early 2024.

Acquisition rationale

 

·    The acquisition of HBFS is in line with TEAM's strategy to build its
representation within the Channel Islands and is the third Jersey based
financial planning business to be acquired by the Group, following the
acquisitions of Concentric Group and Omega Financial Services in 2022.

·   The Company expects that the transaction will generate significant
economies of scale and that the existing HBFS business will benefit from being
part of the broader TEAM platform.

·     HBFS will be integrated into the TEAM platform under the Concentric
brand led by its MD, Gordon Bennie.

·    HBFS' shareholders and directors, Michael Barney and Marzena
Dziewulska, will remain with the Company for a three-month handover period and
will be available thereafter in a consultancy capacity.

 

Update on Thornton acquisition

 

·   In June 2023, TEAM announced the acquisition subject to regulatory
approval of financial planning business, Thornton for consideration of up to
£2.5 million. Since then, Thornton's management team has decided to remain
independent and TEAM has agreed to an amicable cancellation of the proposed
acquisition.

 

Mark Clubb, Chairman of TEAM, commented: "I am delighted to welcome the HBFS
team into the Group. We know them well and are confident that they will be a
strong addition. This will be our fifth acquisition in Jersey since
incorporation and we will focus on eliminating duplicate costs and supporting
the team as they build their client base. There is no doubt that we are
creating a high calibre service for clients in Jersey."

 

Michael Barney, Managing Director of HBFS, said: "I believe that in TEAM we
have a found a good home for HBFS. As a London quoted plc, and an established
player in our market, it will provide our team an opportunity to grow and
develop and our clients with a range of financial services that will enhance
the service they receive. I look forward to seeing HBFS flourish under the
TEAM banner."

 

Enquiries to

 TEAM plc                                                                 +44 1534 877 210

                                                                        (https://url.avanan.click/v2/___tel:+1534877210___.YXAxZTpzaG9yZWNhcDphOm86NTBkODM5NDVhYzUyMjRjNDQwMTMyNWUyM2NkMjkwNDM6NjpiMWZkOjA1ZTQ1MjRjZmJmMjY5OGEzMjdjMjRkODA4ZDg0MTc2ZmQ1ZWM5MGU0ZDk5YTk2YTViZjQxNmYzMjFjNGZiNjA6cDpU)
 Mark Clubb, Executive Chair

 Matthew Moore, CFO and COO

 Shore Capital (Nominated Adviser and Broker to TEAM)                     +44 20 7523 8000

 Tom Griffiths, Iain Sexton, Guy Wiehahn
 Novella Communications (Financial Public Relations)                      +44 20 3151 7008

 Tim Robertson, Claire de Groot, Safia Colebrook
 Hannam & Partners (Financial Adviser to TEAM)                            +44 20 7907 8500

 Giles Fitzpatrick, Richard Clarke

www.teamplc.co.uk
(https://url.avanan.click/v2/___http:/www.teamplc.co.uk___.YXAxZTpzaG9yZWNhcDphOm86NTBkODM5NDVhYzUyMjRjNDQwMTMyNWUyM2NkMjkwNDM6NjpmMGY2OmE3NmNlYjYzYmFhYjIwYzc2ODI1ZjkwYjQxODQ1ZjgwZjRhNGNiMWM4M2IwNTQ5Y2JlZWFmMjg2OGFjZWMyNWI6cDpU)

 

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