News: Ashley Services Group enters halt ahead of earnings update

Ashley Services Group (ASX:ASH) is focused on training, recruitment and labour hire across Australia and has now gone into an ASX trading halt concerning an update on its earnings for the year ending 30th June 2015.

This will last until the earlier of the announcement being made or the start of trade on Wednesday, 29th April 2015.

Earlier this month, the company entered into a conditional Sale and Purchase Agreement to acquire Global Education and Training Group Pty Ltd, a Nationally Registered Training Organisation trading as SILK Education and Training, for $1.5 million.

The acquisition brings strong knowledge of the corporate training market in Victoria which compliments Ashley by allowing pathway opportunities between both public and corporate markets.

A further $3 million is potentially payable in future earn outs, based upon current management achieving key “stretch” performance targets in financial year 2016.

SILK’s forecast EBITDA is $0.6 million for its full year ended 30th June 2015. The acquisition is expected to be earnings per share accretive for ASH.

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