IRT Surveys provides a range of services focused on addressing fuel poverty, decarbonisation and energy efficiency. It has developed over several years a proprietary technology platform, called “DREam”, and now has more than 30 registered social housing provider clients spanning the UK, having surveyed some 350,000 domestic properties.
Housing sector provider Mears Group is acquiring the Dundee-headquartered firm in a deal worth up to £4.1m.
It told investors: “The board believes there are significant opportunities in the structurally growing field of carbon reduction, which will be complementary and additive to the services already provided by Mears.
“The requirement to decarbonise an ageing housing stock, especially in affordable housing, is accelerating in the current environment given the significant increases in energy costs, and the agenda to meet the government’s targets of achieving net zero by 2050.”
Bosses said the acquisition would provide the group with new skills and capabilities in this area, bringing new expertise in-house, supporting pre-sales activity and helping to unlock the company’s ability to deliver carbon retrofit work, which has been identified as a “significant market”.
IRT is being acquired on a cash free, debt free basis, consisting of an initial consideration of £3m, and subsequent consideration of up to £1.1m, payable over a two-year period following completion, subject to satisfactory performance against business development targets. The deal will be settled in cash and funded out of Mears’ existing cash resources.
In the year to the end of December 2021, IRT reported revenues of about £400,000 and an operating loss of £100,000. The business is on-track to deliver revenues of £800,000 in the current year and an operating profit in the region of £200,000.
Mears chief executive David Miles said: “This deal is completely aligned with our strategy, utilising innovation and technology to drive positive change in the sphere of carbon reduction. We are excited to welcome IRT and its employees into the group.”
Mears currently employs around 5,500 people across all areas of the UK.