17 November 2016 – acquisition
The group has announced the acquisition of Enzyme Testing Labs, a leading supplier of technical services to the video games industry. The latter is a Canadian company based in Montreal and its acquisition will significantly increase the testing capacity of the group, bringing together two of the leading video games testing providers. The acquisition is costing CAD$5.4m (approx. £3.2m) and is being funded from the group’s existing cash resources. It is expected to be earnings enhancing and despite the fact that the shares have a had a good run we maintain our recommendation of BUY.