Daily News

View All News

UK – Staffing firm Morson to go private

28 May 2012

The British provider of technical contracting personnel Morson (MRN:LSE) is to go private after the  executive management team agreed a 50 pence per share offer with the firm’s independent directors.

The firm became publicly listed six years ago and Morson said last Friday that “the 50p offer price is at a 20% premium to last night’s [24 May] 41.5p close. Holders of 57% of shares have already said they will accept.”

On Friday, when the announcement was made public, the company’s share price jumped by +18% to 47.5 pence.

MMGG Acquisition made the offer comprising Morson’s executive management team of Gerry Mason (Chairman), Ged Mason (Group Chief Executive), Paul Gilmour (Group Finance Director) and Kevin Gorton (Group Managing Director).

In recent years, the company’s share price has continued to drop. It first started out at 160 pence per share, having reached a 52-week low of 36.7 pence set in December last year. It has been reported that Morson’s management is worried that weaker share prices will impact the renewal of long-term contracts.

But Morson commented that client, contractor and staff contracts will continue unaffected by the offer and it is very much “business as usual.”

Morson Group is a UK-based company, operating in human capital resourcing, including acting as an employment business, a recruitment agency and the provision of technical personnel for engineering management and design consultancy. The company has a market capitalisation of £22.22 million.

The firm reported in March that annual revenue in 2011 was up +11% to £507.9 million from £457.6 million in 2010. But the company also said it expected 2012 to be a “challenging” year as margin pressures are to continue after net profit dropped sharply.

Comments

Add New Comment

Post comment

NOTE: Links will not be clickable.
Security text:*