Adia to return OIS to UK stock market

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OIS INTERNATIONAL Inspection has regained its independence 18 months after being taken over for a second time, writes John Shepherd.

In April 1988, OIS was taken over by a consortium headed by Paul Bristol. In June 1991, the renamed Brompton Holdings was acquired by Adia, the Swiss employment and agency group, which is now demerging the group back on to the UK stock market.

'We have virtually gone full circle,' said Malcolm Russell, managing director of the provider of technical inspection services to the construction, petrochemical and power generating industries.

OIS International has been formed as a holding company to acquire a group of companies operating under the OIS name.

Some 30 million shares are being placed with institutional and private investors at 50p each. The directors will own 200,000 shares.

Adia will receive pounds 10.6m of the pounds 15m raised from the flotation, sponsored by JS Gadd. The broker is Neilson Cobold.

Adia originally paid pounds 11.7m for the company, although the purchase price included large debts. Post-flotation debts of OIS will be cut from pounds 3.5m to less than pounds 1m.

'Independence is important for a company which undertakes inspection work,' Mr Russell added.

The company, he said, was 'quite robust against recession. Much of the work is regulatory, needing to be done for safety reasons.'

Turnover, which was pounds 27m in 1989, now exceeds pounds 40m. The directors are forecasting pre-tax profits of pounds 1.6m for this year.

The UK generates about 60 per cent of turnover for the company, which is based in Nottinghamshire and has 13 regional branches and 14 overseas offices.