Penna Consulting Plc, a London-based human resources consulting group, has acquired local rival Barkers Group out of administration for £8.6 million in cash.  

The acquisition will be funded from Penna's existing cash and working capital facilities. The board of Penna expects the acquisition to be earnings enhancing in the current financial year.

Penna chairman Stephen Rowlinson said: "Barkers was placed into administration largely because the group had excessive debt and a number of onerous leases. However, the underlying business is sound and produced positive EBITDA in 2008."

In the 12 months to March 2009, Penna reported revenues up 30 per cent to £63.2 million, with pre-tax profits up 176 per cent to £6 million.