Work Group targets AIM
Article Date: Jan 23 2006
Recruitment specialist Work Group, founded by executive chairman Simon Howard and colleagues with £1 million in 2000, intends to raise £7 million through an AIM float in March.
Since supported by venture capitalist Jon Moulton and Penta Capital, Work Group has grown organically and by acquisition. Last year, the company reported earnings before interest, tax and depreciation of £2.1 million on net fee income of £11.9 million.
That assumes a full-year contribution from Armstrong Craven, a major executive research company, which Work acquired last October. Armstrong Craven brought with it an 'extensive proprietary database', which Work sees as a valuable resource for the whole group.
The company, which has six offices around the country, has two other divisions. Work Communications provides clients with communications and consulting services, including advertising, and Work Resourcing provides employers with 'recruitment process outsourcing services', such as managing contracted-out recruitment programmes.
Work's client list includes Asda, Alstom, Barclays, GlaxoSmithKline, Unilever, Vodafone and Nestle, but Howard says no single client generates more than three per cent of total income. He says the company's conversion rate is about the same as most its industry peers and argues future growth will come through cutting out third party intermediaries between client companies and potential recruits and through more acquisitions.
Altium is nominated adviser and broker to Work Group, whose issue price has yet to be finalised.
