William Roxburgh and Michael Booth entered into a conditional agreement to acquire FMS Business from MJ Hudson Group plc (AIM:MJH) for £1 million on March 9, 2023. The FMS Business includes the companies - MJ Hudson Advisers Limited, MJ Hudson Fund Management Limited, MJ Hudson Consulting Limited, MJ Hudson Fund Administration Limited and certain client contracts being serviced by the FMS Companies. The consideration for the transaction is £1.0 million in cash plus £15,000 for the first three months from exchange and £30,000 thereafter until completion, to be paid on completion.

Following exchange, the buyers will also provide £1.8 million of working capital to the FMS Companies of which £1.3 million is expected to be used as regulatory capital following completion. On completion, the inter company loans between the MJ Hudson Group and the FMS Companies will be reorganized as a consequence of which the outstanding loans due from the Group to the FMS Companies, which are £1.98 million, will be extinguished. The transaction will be funded by investment by way of convertible loan notes and equity investment from David Sherriffs.

The profits before tax attributable to the assets being sold for the audited year to June 2021 was £600,000 and profits before tax for the unaudited year end June 2022 were £22,000. It is expected that, on a fully converted basis, this will convert such that the FMS Directors would hold 10% following such conversion. Completion will take place once regulatory approval from the Financial Conduct Authority is received.

Giles Balleny, Stephen Keys and Callum Davidson of Cenkos Securities plc (AIM:CNKS) acted as the financial advisor to MJ Hudson Group plc (AIM:MJH).