Shares digital

Acquisition bodes well for sub-sea solutions provider

by Rachel Robson

Although shares in sub-sea solutions provider Hallin Marine (HMS:AIM) have climbed more than 80% since the start of the year to their current price of 173.5p, they should continue to rally following the completion of the group’s first acquisition. Hallin has bought Prospect Flow Solutions – an engineering consultancy service company to the energy sector – for £3 million with a mixture of cash and shares.

The deal, which could be the first of several acquisitions, will give Hallin exposure to projects in the early stage of development and will enable Hallin to offer its clients total solutions packages. In turn, Hallin believes Prospect will benefit from access to Hallin’s clients, particularly in the Asia Pacific region, where it is not currently represented. Additional consideration of up to £1.7 million will be payable based on material growth in the financial performance of Prospect between now and December 2010.

‘Until now Hallin’s rapid expansion has been solely through organic growth,’ says chief executive John Giddens. ‘Looking forward, we see further profitable expansion from both organic growth and do not rule out further acquisitions of companies that will add real value to Hallin.’

Shares says: Promising news and there should be more to come. Buy