Newcourt group founders consider buyout proposal

THE three original founders of Dublin-based multi-disciplined support services group Newcourt are considering a management buyout proposal for the group.

In a statement released yesterday, group chief executive Ted O’Neill; non-executive director Phil Sykes; and executive director Hugh O’Neill said that they had sought and received permission from the Newcourt board to “explore the possibility of securing third party equity and debt funding with a view to making an offer for the group.”

Newcourt’s business interests span the recruitment, health and safety, electronic security and student accommodation (via its ownership of the Ely Property Group) sectors. Early last month, the group reported a first-half rise of 34% in revenue but a fall in pre-tax profits from €5.2m to €1.7m, but was quick to add that it was continuing to perform satisfactorily across each of its business divisions, given the current market conditions. The group’s board has been considering how best to secure the future strategic development of the business as the economic climate worsens.