1 September 2017 – acquisition
The company has announced the acquisition of the business and assets of PowerPax UK Ltd, which serves the industrial power supply market, for a total consideration of £2.8m in cash. For the year ended 31 August 2016, PowerPax recorded sales of £3.3m and profit before interest and tax of £0.4m. This looks like a useful addition and the deal has been completed on sensible terms. We see no reason to change our BUY recommendation at this stage.