Winterhill snaps up debt recovery firm as it looks towards flotation

John Collingridge

A YORKSHIRE debt recovery firm has been snapped up by a group aiming to float on the London Stock Exchange.

Winterhill Group is buying Largo, based in Ossett near Wakefield, as part of its expansion plans and flotation on AIM.

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Winterhill, which provides asset valuation and debt recovery services, plans to list on AIM in the near future.

Lancashire-based Winterhill said it plans to raise about 6m through a placing to buy Largo, as well as provide working capital and funds for more acquisitions. It said the acquisition will allow it to provide a one-stop-shop for insolvency practitioners, financial institutions and asset-based lenders.

Largo, which is also known as Legal and Receivables, was founded in May 2002 by Paul Snook and has grown rapidly. It won the 2009 Commercial Debt Collection Agency of the Year award and now employs 30 staff. Mr Snook will become executive director of Winterhill following the acquisition.

Winterhill Asset was founded by brothers Andrew and Neil Duckworth. Neil becomes chief executive of the new group and Andrew becomes executive director.

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Neil Duckworth said: “The acquisition of Largo marks a significant step in the group’s aim to provide a single source of asset valuation, recovery, restructuring and realisation services. We look forward to working with the Largo team as we aim to continue its impressive growth record.”

Winterhill believes it will benefit from a steady stream of insolvencies as the UK claws its way out of recession.

Neil Duckworth said: “While we have had success in the insolvency market during the current recessionary climate, the IPO provides a real opportunity to expand the Winterhill Asset business into non-insolvency based services, including the provision of asset appraisal and recovery services direct to banks and asset-based lenders.”

He added: “This is an extremely exciting opportunity for the group. Having established our position in the market with the success of Winterhill Asset Management, we feel this decision will help us to take the enlarged group forward into the next phase of its development and capitalise on the extensive market opportunities that are out there.

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“As well as continued organic growth, we can seize the opportunity to consolidate what is still a fragmented industry through acquisition.”

Winterhill has also appointed Harry Hill as non-executive chairman and Paul Hancock as non-executive director.

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