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finnCap Group Acquires 50% Stake in Net Zero and Sustainability Consultancy.

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MANews-(C)2009-2022

British investment bank, financial services firm, and a corporate and institutional stockbroker, finnCap Group plc (LSE: FCAP) has acquired a 50% interest in Energise Ltd. a net zero and sustainability consultancy, based near Cambridge, the group said.

Energise was established in 2008 by Simon and Tamsin Alsbury with the initial objective of developing energy saving options for corporate and public sector clients.

It has since grown into a full-service Net Zero and energy efficiency practice assisting c.180 clients in meeting their climate change challenge with a core focus on regulatory compliance, best practice, measurement and emission reduction programmes to drive effective climate-focused business transformation.

Energise was awarded B-Corp status in February 2022.

For the 12 months ended 30 September 2021, Energise generated unaudited revenue of cGBP 1.1m and EBITDA of c.GBP 0.1m.

The current financial year has started well and, for the six months to 31 March 2022, Energise has invested in people and client growth with consulting revenue increasing c.90% over the prior period and with profits at a breakeven level.

finnCap has acquired its 50% interest for consideration of c.GBP 2.1m payable as cash of c.GBP 1.9m and 902,090 new finnCap ordinary shares.

Of the cash consideration, c.GBP 1.5m will be subscribed for new ordinary shares in Energise, providing the capital to fund revenue growth in its existing practice and to establish a culture and diversity practice.

The remaining cash and ordinary shares will be predominantly paid to the co-CEOs of Energise. finnCap has also agreed to loan up to a further GBP 0.3m to support growth over the next three years.

In addition to its investment, finnCap will provide Energise with marketing expertise; access, where appropriate, to its client base; and broader growth advisory services.

finnCap has an option to acquire the remaining equity interests in Energise for 12 months after approval of the accounts for the year to 30 September 2025 based on normalised EBITDA for that year and an EBITDA multiple of between 6-8x linked to the achievement of its business plan and the proportion...

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