Recruitment specialist the hotgroup plc today announces the acquisition of Profiles Resource Management Ltd (PRM) for 750,0001 in a cash buyout. PRM provides outsourced recruitment services2 to some of the UKs leading employers. This acquisition adds a new capability to the hotgroups services, representing a strategic move into HR managed services which will complement its existing online and traditional recruitment capabilities.
Recruitment process outsourcing is experiencing rapid growth3 and the acquisition of PRM builds on the hotgroups strategy of deploying technology to increase efficiency in the recruitment process for employers. The Baird report on HR outsourcing points to the trend for businesses to focus on their core business functions and to outsource routine, labour intensive HR processes to external specialist companies like PRM.
Sue Brooks, an existing Director and 50% shareholder of PRM will join the hotgroup as Managing Director of PRM. She was a founding member of PRM in 1999.
For the year ended 30 September 2004, PRM recorded turnover of approximately 977,000, a profit before taxation of approximately 110,000.
Commenting on this acquisition, Tony Reeves, Chairman and Chief Executive of the hotgroup said:
“The acquisition of PRM moves the hotgroup forwards into a rapidly growing area of the recruitment industry outsourcing, and adds a further source of competitive advantage. We intend to use our existing technology to enhance the PRM model in line with our strategy of combining technology and the internet, with traditional recruitment services to offer clients the most effective recruitment solutions. We expect this acquisition to be earnings enhancing during 2006.
1 The aggregate consideration payable is up to 754,000, of which 525,000 will be paid in cash on completion of the acquisition and the balance payable when certain profit targets are achieved over the 12 month period immediately following the completion of the acquisition.
2 Outsourced recruitment services include:
1. Bringing recruitment “in-house” for companies, rather than relying on external third parties
2. Locating our resources on-site with the client in an outsourced capacity
3. Using technology, in particular the internet, to increase efficiency in the hiring process
4. Developing strategic hiring models and talent pools to meet future business needs
5. Direct hiring strategies to reduce costs and time per hire and to promote an employer brand
6. Resourcing the employer’s recruitment function to minimise fixed costs and maximise scalability and flexibility
7. HR consultancy, including recruitment process design and training
3 Baird M&A Analysis, 2003. Human Resources Outsourcing Gaining Traction Fast
Press Enquiries:
Chris Herrmannsen (020) 7000 9981
the hotgroup plc
James Hogan / Helen Barnes (020) 7404 5959
Brunswick Group LLP
Notes to editors:
About the hotgroup plc
Listed on AIM (HOT.L), the hotgroup plc is a unique technology-led recruitment company combining online and traditional recruitment solutions
The company is led by Tony Reeves, formerly CEO of the Delphi Group & co- founder of Office Angels. Harvey Sinclair is Managing Director of the online business and Chris Herrmannsen, Managing Director of the recruitment consultancy business
Company head office is based at Kensington Village, London, W14 8TS
HOTGROUP PLC ACQUIRES RECRUITMENT PROCESS OUTSOURCING SPECIALIST
