David Southworth, P&P's managing director, said: 'CFB's principal areas of activity are the same as ours.' The Scottish firm brings P&P customers in finance, oil and local government. Its existing managers will stay. Mr Southworth said it would continue to operate as an independent business.
CFB made pre-tax profits of pounds 530,157 in 1993 and had net assets of pounds 2.4m at the year-end. It will receive an initial consideration of pounds 3.74m in P&P shares and cash. P&P is to issue 4.5 million new shares, about 8 per cent of its existing equity. To earn the maximum pounds 6.6m payment, CFB would need to make pre-tax profits of at least pounds 950,000 in 1994.
The change of strategic direction helped to double P&P's pre-tax profits from pounds 2m to pounds 4.1m in the year to 30 November 1993.
Analysts said the acquisition would improve P&P's ability to provide computer services nationwide. The shares closed 4p higher at 73p.Reuse content