127
Financial statements
OCU Group | Annual report and financial statements 2025
Strategic report
Governance
for the year ended 30 April 2025 Notes to the consolidated financial statements
27. Business combinations continued FY25 acquisitions continued McCormack Drilling
The goodwill arising from all acquisitions is attributable to the expertise and experience of the workforce and economies of scale that will arise from combining the operations with the Group. In each instance, management has estimated the useful life of the goodwill to be ten years. Acquisition performance Since their respective acquisition dates, the FY25 acquired entities have contributed £195.2m to turnover and £39.6m of profit before tax to the Group, of which RJ McLeod contributed £188.5m and £40.6m, respectively.
On 22 October 2024, the Group acquired 100% of the ordinary share capital of Carmar Ltd and its subsidiary Peter McCormack & Sons Limited (together ‘McCormack Drilling’), for an initial consideration of £24.4m and deferred consideration of £12.4m. McCormack Drilling brings trenchless technology solutions and major horizontal directional drilling projects to the Group.
Acquired net assets
FY24 acquisitions Details of acquisitions in the prior year are provided in the prior year financial statements.
McCormack Drilling £000
RJ McLeod £000
Purestream £000
Total £000
Northavon On 19 May 2023, the Group acquired 100% of the ordinary share capital of Northavon Group Limited, Northavon Holdings Limited, Northavon Water Services Limited and Multivein Limited, along with their subsidiaries (together ‘Northavon’) for total consideration of £19.8m. During the year, it was discovered that trade and other payables were understated by £1.4m at acquisition, therefore goodwill has been revalued in the current year accordingly.
Property, plant and equipment
8,090
388
5,602
14,080
Cash and cash equivalents
120,656
240
3,543
124,439
Stock
40
—
—
40
Trade and other receivables
34,057
192
4,991
39,240
Trade and other payables
(47,038)
(179)
(2,151)
(49,368)
No adjustments have been made to the figures previously reported for the other acquisitions.
Provisions for liabilities
(8,719)
—
—
(8,719)
Lease liabilities
—
—
(571)
(571)
Cash flow effect of acquisitions The aggregate cash flow effect of acquisitions was as follows:
Deferred tax
175
—
(965)
(790)
Total identifiable assets
107,261
641
10,449
118,351
2025 £000
2024 £000
Goodwill
196,818
1,925
27,078
225,821
Deferred tax arising on consolidation
(124,439)
Net cash acquired
(5,798)
(338)
—
(314)
(652)
290,086
Cash consideration including fees
79,635
Cost of the business combination
303,741
2,566
37,213
343,520
40,000
Contingent consideration paid – FY25 acquisitions
—
Comprising: Cash
6,200 9,000
Deferred consideration paid – FY25 acquisitions
—
259,421
1,425
24,430
285,276
Contingent consideration paid – FY24 acquisitions
—
Deferred consideration
—
557
12,400
12,957
400
Deferred consideration paid – FY24 acquisitions
—
Contingent consideration
40,000
477
— 40,477
7,450 1,667
Contingent consideration paid – FY23 acquisitions
124
Total consideration payable
299,421
2,459
36,830
338,710
Deferred consideration paid – FY23 acquisitions
1,667
Directly attributable fees
4,320
107
383
4,810
—
Deferred consideration paid – FY22 acquisitions
150
Total cost of acquisition
303,741
2,566
37,213
343,520
Net cash outflow on acquisitions
230,364
75,778
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