Shares digital

The acquisition of Dutch environmental and estate management consultant Kraan by RPS Group (RPS) is set to be the first of many this year, with the company saying it expects to complete more acquisitions in the ‘coming months’.

Kraan will cost around £4.8 million, brings with it some 65 staff and generated revenues of £5.3 million in 2007. It provides consultancy services that help companies and government agencies to save money through energy use reduction, which in turn reduces their carbon footprints.

RPS already has a strong business in the Netherlands and has previously used Kraan’s services on behalf of its clients. The deal follows on from a series of acquisitions in 2007, the last of which was the $11 million acquisition of US based consulting group JDC in December.

The buying spree, however, is set to continue this year, and Numis analyst Francesca Raleigh believes the company could comfortably spend as much as £55 million on additions in 2008.

With trading said to be going strong and excitement about future plans, she has set a 324p target price for the shares, which is a 23% premium on their current 262.75p level.

Shares says: The shares have divebombed from a high of 391p last year but news of further deals could prompt a recovery.