Begbies Traynor makes north east acquisition
14 Feb 2019
Begbies Traynor Group has acquired KRE (North East) Ltd, a Newcastle based insolvency practice in a bid to strengthen its presence in the region
14 Feb 2019
Ian Kings founded the business in the north east under the KRE branding in 2015. In the financial year ended 30 June 2018, it reported annual revenue of £400,000 and pre-tax profits of £100,000. It had gross assets of £300,000 as at 30 June 2018.
Begbies Traynor has paid an initial consideration of £450,000 in cash from the group's existing resources. Under the terms of the acquisition, additional contingent consideration of up to £150,000 in cash will become payable based on achieving targets for growing revenue in the 12-month period directly following completion.
The five strong team, including Ian Kings, will join Begbies Traynor’s existing Newcastle insolvency practice.
The firm said it expects the acquisition to be earnings enhancing, both initially and after any additional consideration is paid.
Ric Traynor, executive chairman of Begbies Traynor Group, said: ‘This acquisition is in line with our strategy to develop our market-leading business recovery practice, alongside our property services consultancy, and brings additional expertise and relationships to our existing operations in Newcastle and the broader north east region.
‘Ian Kings and his team have built a strong reputation in the region and we look forward to supporting them to build on this successful track record as part of the broader group.’
Report by Pat Sweet