23-Mar 2007

Acquisition Secures Air Conditioning Strength for GSH Group

GSH Group plc, the international provider of bespoke facilities management and energy management solutions, today announces the acquisition of Delta Environmental Services Ltd (“Delta”) for a total cash consideration of £4.8m in a deal which will further strengthen the Group’s existing specialist air conditioning offering in the marketplace.

In the year ended 31 October 2006 Delta had a turnover of £8.2m, pre-tax profits of £0.8m and net assets of £1.7m. The Board believes that the acquisition will be earnings enhancing in the first full year following acquisition and provide the opportunity to add further synergies through incremental growth and integration with the existing GSH businesses.

GSH Group Chief Executive Colin Tennent said: "This is an exciting move for our business and it will strengthen our position as a leading provider of all technical facilities management services. GSH is pursuing an aggressive strategy of growth and this acquisition will provide an additional platform to increase our self-delivered product offering."

Founded in 1984, Delta is a UK business that designs, procures, installs, commissions and maintains air conditioning, heating, ventilation and refrigeration systems. Its maintenance service teams operate across the UK, providing national coverage. Delta employs approximately 50 staff, including well-trained engineers providing a wide range of capabilities. It is well regarded for its technical capabilities and has a strong reputation for customer services with long-term clients. Customers include major UK retailers such as Starbucks, Boots, Clarks and Karen Millen. A growing maintenance base provides recurring revenues and new installation work.

Colin Tennent added: "This purchase is an ideal fit with our business, not only in terms of business proposition but also in terms of our culture of excellent service, delivered by skilled and committed engineers. Delta is a well-organised company which will benefit from the large infrastructure that GSH can offer."