PRG undergoes reshuffle after RCP cash injection
31 August 2012
Public Recruitment Group (PRG) has replaced the three most senior people in the company, and will raise £4.9m to reduce debt.
Private equity firm Risk Capital Partners is injecting the cash in
Private equity firm Risk Capital Partners is injecting the cash in
Public Recruitment Group (PRG) has replaced the three most senior people in the company, and will raise £4.9m to reduce debt.
Private equity firm Risk Capital Partners is injecting the cash in return for a 27% stake. Luke Johnson, chairman of Risk Capital Partners, will join the PRG board as a non-executive director. He will become chairman on 1 June, replacing Luke Benton.
Darren McLaney has resigned with immediate effect as chief executive of PRG but remains in a non-executive capacity, to facilitate a smooth handover to the new chief executive, Dean Kelly, currently managing director of education and social. Nick Williams will also resign as group finance director and be replaced by Daniel Urmson, group financial controller on 31 May.
Earlier last week, PRG, headquartered in Sheffield, sold its locum doctor division to Healthcare Business for £5.5m (www.recruiter.co.uk).
McLaney said: "The disposal of the locum doctor business, alongside the placing, halves our debt."
Dean Kelly, the new chief executive, told Recruiter: "I am both excited and confident about the future of PRG. Over the last few months we have made some material changes to the business, ensuring that we are perfectly placed to exploit our internal synergies and take advantage of public sector consolidation.
"The changes in the board reflect the changes in the business and leave PRG as a leaner, sharper company."
Risk Capital will buy 12.195m shares at 41p each, an 18.8% premium to the price before the day before the deal. PRG shares rose to 48p the day after the announcement, the highest in more than a year.
Separately, PRG said it was in line with market expectations for the first quarter of 2007. Operating profit achieved represents organic growth of 6% compared with 2006.
Private equity firm Risk Capital Partners is injecting the cash in return for a 27% stake. Luke Johnson, chairman of Risk Capital Partners, will join the PRG board as a non-executive director. He will become chairman on 1 June, replacing Luke Benton.
Darren McLaney has resigned with immediate effect as chief executive of PRG but remains in a non-executive capacity, to facilitate a smooth handover to the new chief executive, Dean Kelly, currently managing director of education and social. Nick Williams will also resign as group finance director and be replaced by Daniel Urmson, group financial controller on 31 May.
Earlier last week, PRG, headquartered in Sheffield, sold its locum doctor division to Healthcare Business for £5.5m (www.recruiter.co.uk).
McLaney said: "The disposal of the locum doctor business, alongside the placing, halves our debt."
Dean Kelly, the new chief executive, told Recruiter: "I am both excited and confident about the future of PRG. Over the last few months we have made some material changes to the business, ensuring that we are perfectly placed to exploit our internal synergies and take advantage of public sector consolidation.
"The changes in the board reflect the changes in the business and leave PRG as a leaner, sharper company."
Risk Capital will buy 12.195m shares at 41p each, an 18.8% premium to the price before the day before the deal. PRG shares rose to 48p the day after the announcement, the highest in more than a year.
Separately, PRG said it was in line with market expectations for the first quarter of 2007. Operating profit achieved represents organic growth of 6% compared with 2006.
