Acquisition of Boyd Exploration Consultants Ltd

Founded in 1977, Boyd operates primarily in Canada, from its headquarters in Calgary. Having been established and developed as an oil and gas exploration and production advisor, Boyd has, in recent years, successfully expanded into both the Canadian and international mining sectors, particularly the potash industry. In these markets it acts as both consultant and project manager for large, blue chip clients on geological investigation projects. Boyd also provides environmental advice to its clients through a wholly owned subsidiary, Wildside. Together the businesses employ 26 staff and, as with our Energy business, use a wide range of sub-consultants.

In the year ended 31 March 2010 Boyd had revenues of C$12.6 million (£7.7 million) and profit before tax of C$2.88 million (£1.76 million), after adjustment for non-recurring items. Net assets at 31 March 2010 were C$4.3 million (£2.6 million), after adjusting for assets excluded from the transaction. On a similar basis, gross assets at 31 March 2010 were C$11.6 million (£7.0 million).

RPS is acquiring the entire share capital of Boyd for a maximum total consideration of C$13.87 million (£8.46 million), all payable in cash. Consideration paid at completion was C$7.30 million (£4.46 million). Subject to certain operational conditions being met, three further sums of C$2.37 million (£1.44 million); C$2.39 million (£1.46 million) and C$1.81 million (£1.10 million) will be paid on the first three anniversaries of the transaction. The nine vendors of the business include six directors and staff of Boyd, all of whom are remaining with RPS.

Alan Hearne, Chief Executive of RPS, commented:

“The acquisition of Boyd helps develop further our business in Canada. It will support our oil and gas consultancy activities and takes us into an attractive part of the mining sector. This builds on our acquisition earlier this year of Aquaterra, which enabled us to enter the mining sector in Australia and internationally. We are continuing to look for further opportunities to increase the scale of our activities in this growing sector.”