ASHLEY SERVICES GROUP LIMITED — M&A Activity 2020

Sep 14, 2020

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15 September 2020

Ashley Services Group Limited completes acquisition

of a National Rail Training provider

Ashley Services Group Limited (ASX: ASH), today announced that it has acquired 100% of the shares in The Instruction Company Pty Ltd, a Registered Training Organisation (RTO) servicing the Rail sector nationally.

The final acquisition price will be between $1.85-2.0 million. Unaudited FY20 results for The Instruction Company was a normalised EBITDA of $0.5 million on Revenue of $2.4 million. The purchase consideration will be funded from existing cash reserves.

Ashley Services Managing Director Ross Shrimpton said, “The acquisition of The Instruction Company is an important strategic move for Ashley, giving us exposure to the large and rapidly growing rail industry. We are pleased to welcome the Instruction Company team who bring substantial rail industry experience and knowledge along with a broad national customer base”.

The acquisition is expected to be EPS accretive in FY21 and the purchase provides Ashley Services Group Limited with the economic benefit from 1 July 2020.

Background on The Instruction Company:

The Instruction Company has, since 1996, been creating and delivering rail training solutions to track owners, rail operators, contractors and service providers across Australia. Services offered include:

• Training and Assessment

• Certification and Recertification

• Rail Industry Consulting

• Courseware Development

For further details:

Chris McFadden Executive Director, Company Secretary & Chief Financial Officer

Established almost half a century ago as a Labour Hire business in Sydney, Ashley Services Group listed on the Australian Securities Exchange in 2014. Today, it has cemented its position as a prominent national labour hire provider engaging approximately 5,000 workers on a weekly basis.

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