Search

Farsands strategy pays off

PROJECT and risk consultancy group Farsands Solutions has signed a binding terms sheet for the acquisition of east coast consultancy firm DASCEM. Farsands is also expected to announce further growth plans this week. The acquisition of DASCEM rounds off a sequence of mergers for the Perth-based company, which listed in 2003 with the express purpose of assembling a group of similar risk management firms. Farsands will purchase all shares in DASCEM for $5.5 million, payable as $3 million cash at settlement, a $500,000 convertible note and a $2 million deferred consideration component based on a performance hurdle being met. DASCEM has offices in Melbourne, Sydney and Canberra, providing specialist facilities management, environmental and engineering services to customers in Australia. Farsands recently bought the remaining 33 per cent stake in project, property and events management company APP (WA), having previously owned two-thirds. Before that, Farsands merged with project and development management group Clifton Coney, based in Sydney, which has offices in Dubai, Vietnam and New Zealand. The company also owns occupational health safety and environment consultant MPL. Company secretary Jeff Broun said DASCEM was just another piece of the jig-saw. The east coast operations far outweigh the Perth business now, Mr Broun said, but the head office is expected to remain here. “We will not be seen as a WA company now,” he said. The group recently announced plans to open another office in South Africa. Mr Broun said the company was looking to expand the business further and would have another announcement to make within the week. Integrating the different accounting platforms of the businesses had been the hardest task, he said. “They’re all competing in similar fields, but they’re all different,” Mr Broun said. The company forecast to deliver net profit after tax of $3 million to June 30 this year, but revealed to the Australian Stock Exchange in May that it was on track to exceed that figure by 10 per cent. In addition to the growth by acquisition, he said the company had also experienced significant natural growth, as the risk consultancy sector grew in Australia. But, as is the case in most sectors, Mr Broun said the biggest challenge was in finding the right people.

Add your comment

BNIQ sponsored byECU School of Business and Law

Students

6th-Australian Institute of Management WA20,000
7th-Murdoch University16,584
8th-South Regional TAFE10,549
9th-Central Regional TAFE9,064
10th-The University of Notre Dame Australia6,708
46 tertiary education & training providers ranked by total number of students in WA

Number of Employees

BNiQ Disclaimer