8 October 2015 – acquisition update
The group has announced that completion accounts for the recent acquisition of ESC Europe have now been finalised and these show that in the year to 31 October 2014, ESC made net profits of £0.5m. In the ten month period to 1 September 2015, net profit of ESC was £0.8m. As a result of this, Tandem is paying additional consideration of £0.3m for ESC. The acquisition looks cheap and we think that Tandem shares are due a significant re-rating. BUY