The deal raises the number of consultants in the company’s UK town planning consultancy by around 35% and extends its reach “geographically and segmentally”, the house broker said.
Signet is a leader in the North of England, centred on Yorkshire, and a strong player in the London commercial property market.
“In London, Signet’s strength in commercial property is the perfect foil for WYG’s existing business, which is more focused on the housing market,” the broker said.
The “sensibly priced deal” is worth £3.7mln, with Signet expected to add £700,000 per year in pre-tax profit.
The deal could be worth a lot more than that, however, as cross-selling opportunities between WYG’s current skills are meshed with Signet’s client base.
WH IRELAND upped its forecasts for 2017, giving the company time to integrate its latest acquisition, with pre-tax profit expected to be around 8% higher than previously thought at £9.9mln on sales of £154mln.
“With more than four fifths of 2016 revenues already secured, forecasts appear well underpinned, while we believe that potential remains to raise margins further,” the broker said.
It retained its ‘buy’ rating on the stock and has a 172p price target. WYG’s shares were half a per cent higher on Monday at 137p.