Small to medium sized acquisitions help us to enter new markets where we can grow organically, strengthen existing market positions and build economies of scale, or access a new customer base. For example, we entered the private sector in 2000 with the acquisition of IRG plc and swiftly built significant capabilities through a mixture of acquisitions and contract wins. Private sector business now represents 48% of our annual turnover.

We judge all potential acquisitions against strict criteria, seeking targets that:

• have operations and customers in the UK and/or Ireland
• fit with our strategy and core competencies
• generate sustainable, quality revenue
• are attractively priced, with scope to add value for shareholders
• provide an opportunity to acquire without competition.

We have substantial experience of integrating acquired businesses and achieving synergies with our existing operations. Stringent due diligence, before and after acquisition, enables us to set clear targets for growth, integration benefits and profit. A dedicated project team manages the transition, rigorously applying the processes we have developed to bring financial procedures, ICT, HR, legal, compliance and marketing quickly into line with our standards, using Group systems and resources where appropriate.