We are committed to helping as many people as possible to maximise their full potential. This passion and pioneering attitude has meant that we've built a very successful business, which over the years has constantly evolved and changed. We've grown significantly and moved into new markets, we've designed new innovative services, interventions and products and we are now well on the way to transforming our business as we aim to become an integrated and single end-to-end provider of social needs interventions, following the acquisition of three Community Rehabilitation Companies.
We want to make a significant social difference and this commitment means we will always consider investment opportunities that support our vision and values and which allow us to accelerate our growth plans and continue to succeed.
In addition to our objective of continuing to make a social difference, the management team has exciting plans for the ongoing development of Working Links. In order to achieve our goals for the business, a new ownership is required. We are therefore pleased to let you know that early today Aurelius became the new, sole owner of Working Links.
Aurelius is an investor with a long-term horizon and is experienced at enabling firms to enhance their performance and success through the provision of operational and financial support. It has worked with more than 70 companies across numerous countries, industries and sectors and is fully committed to supporting our plans going forward.
While our ownership has changed, our founding values and purpose endure and we remain committed to helping as many people as possible to maximise their full potential. Our change in ownership will only strengthen our capacity to deliver better services for the people we work with, and provide value for money for our government partners both here and internationally too.
This is a significant and exciting time in Working Links' history and our executive team is really looking forward to working with Aurelius as we continue to implement our business transformation plans, grow our organisation by preparing for the upcoming tenders on the horizon and, most importantly, continue to change lives and create futures.
If you have any questions around this announcement please speak to your director or email me or or any member of the executive team.
Kind regards,
Phil Andrew, Chief Executive.
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Munich/London, 29 June 2016 – The AURELIUS Group (ISIN DE000A0JK2A8) has acquired Working Links, a leading provider of welfare and rehabilitation services with operations in the UK, the Republic of Ireland, and the Middle East. In the 2015 financial year, Working Links recorded revenues of around €160m. The acquisition was made for an undisclosed sum.
Working Links delivers employability consulting and rehabilitation services across three markets: The aim of the employability services is to improve living conditions through employment, training, and personal skills development. The rehabilitation services aim to reduce reoffending and thus protect the public. The international specialist services include employability consulting services for domestic workers in Saudi Arabia and Kuwait, and also delivery of Job Path, the Irish Government’s flagship programme to support bringing long-term unemployed people back to work in six regions of the Republic of Ireland. This contract with the Irish Department for Social Protection (DSP) is delivered by Working Links in a 50-50 joint venture with FRS Recruitment Services, the Irish national recruitment agency with 35 years of experience in providing career advice.
Since its founding in 2000, Working Links has delivered on more than 200 government contracts and programmes, helping over 350,000 people to return to employment and social inclusion.
Phil Andrew, Chief Executive of Working Links: “Today marks an exciting new chapter in the history of Working Links. The long-term investment from AURELIUS will enable the organisation to accelerate its growth and transformation plans and to continue to provide best-in-class services for socially excluded people.”
“The timing of this investment may seem surprising to some audiences directly following the UK’s decision to leave the European Union. However, AURELIUS has always sought investment in complex situations, including turbulent macroeconomic backdrops which often create interesting investment opportunities that fit with our investment model”, said Dr. Dirk Markus, CEO of AURELIUS. “We do not expect detrimental consequences for Working Links due to Great Britain’s upcoming exit from the EU, nor do we expect consequences from Brexit to negatively affect the AURELIUS Group.”
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From Aurelius website:
"AURELIUS focuses on the acquisition of companies with development potential through operational engagement. With respect to the acquisition of subsidiaries, AURELIUS strives to identify, analyze, develop and exploit all available opportunities in the market.
With a strong capital base, international contacts and a large team of specialists in financial and corporate management we will bring your company back on the road to success."
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This from Aurelius UK website:
"We are a pan-European investment group focused on creating value through the operational improvement of companies with development potential. Established in 2004, we are publicly listed in Germany and we operate from offices in Germany and the UK.
We have a track record of successful investment in more than 50 companies in numerous geographies, industries and sectors. Aurelius improves the operational performance of companies by providing management capabilities and financial resources for investing in products, sales and R&D. Aurelius has liquid cash resources for investment of over £200m."
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This from WL own website seems to suggest UK Gov have also been bought out? That was never in the plan for CRCs was it?
"Working Links is pleased to announce that it has been acquired by Aurelius, a specialist investor with a long-term commitment to our future.
The deal will enable Working Links to accelerate our growth and transformation plan, and move to the next level of development in a rapidly evolving marketplace.
While our ownership has changed, our founding values and purpose endure and we remain committed to helping as many people as possible to maximise their full potential, and move from social exclusion to inclusion. Our change in ownership will only strengthen our capacity to deliver better services for the people we work with, and value for money for our government partners in the UK as well as internationally.
We thank our previous shareholders, UK Government Investments, Capgemini, Manpower and Mission Australia, for the pivotal role they have played in our success to date. Here in the UK alone we have delivered lasting employment for over 300,000 people. This is a legacy we are proud of and we look forward to building upon this foundation of success with Aurelius support."
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"Aurelius is a private equity firm that acquires, restructures and eventually sells companies. This is not a company that is in it for the long-term. There is a democratic deficit when public services are traded like any other commodity."
I am so saddened by what has become of our Probation Service, sold and sold again.
ReplyDelete"Everything we hear is an opinion, not a fact.
ReplyDeleteEverything we see is a perspective, not the truth."
(Marcus) Aurelius
Really?? So the hollocaust was an opinion and not a fact! Not very clever really. I work with offenders who are less in denial about the reality of their crimes than you.
DeleteMarcus Aurelius Latin: Marcus Aurelius Antoninus Augustus; 26 April 121 – 17 March 180 AD) was Roman Emperor from 161 to 180. He ruled with Lucius Verus as co-emperor from 161 until Verus' death in 169. He was the last of the Five Good Emperors, and is also considered one of the most important Stoic philosophers.
DeleteWow, Anon 17:33 has clearly never heard of postmodernism either.
DeletePhil Andrews claims Aurelius is an investor with long-term horizons. According to Aurelius they look to make a killing within four years and then sell!
ReplyDeleteBackground
Aurelius is a German private equity firm which specializes in acquiring and turning around distressed businesses. It has been publicly traded in Germany since 2006. There is significant insider ownership - the CEO, Dr. Dirk Markus, owns about 26.5% of the shares outstanding, and the board members collectively own 34.5%.
The current portfolio includes 17 investments of various sizes, and the company also has net cash at the parent level. There is no specific sector focus and acquisitions have included hotels, chemical and industrial businesses, cruise ships, beverages, education and IT consulting among others. Targets are often acquired as “orphans” within larger organizations (a hotel chain from Deutsche Post, IT group from KPN), from bankruptcy or from succession issues in family-owned businesses - classic special situations, predominantly in Northern Europe.
Most investments involve distressed or unprofitable businesses with bloated cost structures or large liabilities such as pensions or leases. As a result, Aurelius generally pays a very low price (and in some cases, is paid to take the liability off the books of the previous owner) and is usually able to create significant value by addressing the liabilities for far less than the seller’s estimate. Each deal is structured as its own special purpose entity, with little recourse to Aurelius beyond its investment, to limit risk. From there, Aurelius follows the usual private equity playbook of cost-cutting, liability management, selective investment and tuck-in acquisitions. The CEO has said that they generally create most of the value in the first four years, and will often look to harvest value through a sales process beyond that point so as to free up capital and management time for new deals.
https://www.valueinvestorsclub.com/idea/Aurelius_AG/128312
Working links must have been near broke to sell themselves out to a venture capital firm. They must have some contract ownership protection with the Government or they would have been gone. It is clear to many that the German involvement means that they own WL and now the profits as they can fund the dismissals agenda then grab the salaries while service users can sod off. Edifying government subsidy back into Europe aren't we supposed to be out ?
DeleteThe UK govt owned one third of Working Links. The statement refers to this rather than the 'Golden Share' which the govt retains in the CRC's.
ReplyDeleteAurelias and WL can speak with forked tongues and try to spin doctor everything but please don't expect intelligent and well educated people to swallow your bullshit. 'An exciting stage in our history'. What utter crap, do you think we were born yesterday! Absolutely disgraceful that noms/ moj have allowed this and the CRC managers just meekly allow it and echo hollow statements about positive opportunities. Aurelius and WL have absolutely no interest in the service users or in public protection. It is all about profit, spin and dirty dealing. How can the government allow our once proud public services to be sold, stripped down and re-sold in this tawdry manner. We are being trafficked and sold to the highest bidder. How can we be expected to do our job and protect the public under these circumstances? When will the government step in and put a to this travesty of justice? Sadly i have little fsith given the complete and utter shambles that the tories have left us in.
ReplyDeleteI can foresee Working Links going down the BHS route within a year
ReplyDeleteWL letter to staff on Friday morning advising staff not to worry following Referendum result, followed in less than 3 working days with emergency early morning phone call to CRC director. Was on annual leave today so unaware of staff phone call from CEO at 9.15am. Did anyone listen to it?
ReplyDeleteOnly heard the last few mins! Alot of ashen faces! We are already coping with so much change and more to come with TR. The thing that annoys me is the mask they put on, pretending it is all good news when we know basically WL had overstretched themselves and sold out to the highest bidder who has a beady eye on more lucrative prison contracts and will sell us on when they get those, maybe for a pound!
ReplyDeleteand I thought slavery in Britain ended almost 2 centuries ago??? WL and this new lot must be rubbing their grubby hands having sold (WL), and bought (Aurelias) a job lot going cheap, with demoralised staff working in offices not fit for purpose, and waiting for further beatings if they don't achieve what their masters have demanded. WL will have made a nice packet - just like that. Aurelias have 'acquired', and will now 'restructure' (more savaging of the staff, and facilities) and will sell off to another master at a profitable price. I agree with all of 1729. Where is the morality? Where is the respect? Where is the rehabilitation? Where is health and safety? Is their anyone in this corrupt CRC business who cares?
ReplyDeleteNOMS you should be bloody well disgusted with yourselves for what you have started.
And what is happening to this country, with so many politicians who would gladly send a decent man like Corbyn a million miles away, but hang on to the liars and cheats? ??!!!
Im not that bright but are you saying that the CRC provider (WL) have sold their CRCs to ANOTHER private company who in turn will bring in their own operating model meaning more changes?
ReplyDeleteNo. The whole of Working Links, 'employability' contracts and all, has been bought by Aurelius, CRC contracts included.
DeleteFrom Hansard, Chris Grayling on 18 Mar 2014:
ReplyDelete"The benefit of having a national probation service that sits under the umbrella of the Department is that, were a bidder to fail, it would be possible for the Department to take operational control of that area while we retendered the contract. There are proper mechanisms in place to ensure that coverage would continue."
Public Accounts Committee May 2014 'Probation Landscape Review':
ReplyDelete"The supervision and management of offenders is an essential public service that must be maintained in the event of a supplier failing or withdrawing from the contract. The supervision and management of offenders is a vital public service. The Ministry acknowledges the importance of contingency planning for a supplier collapsing or prematurely leaving. As commercial negotiations were in progress when we took evidence the Ministry was unable to share the specifics of its plans in this area, but it pointed to the existence of the National Probation Service as a provider of last resort alongside the new companies.
Recommendation: The Ministry must establish a clear mechanism for identifying suppliers at risk of failing or withdrawing from their contracts that includes setting out what action it will take in these circumstances to maintain an adequate service."
This is really scary. Surely when those bids were accepted there was an expectation that the companies would retain the crc for the life of the contract. It's disgusting that this could happen.
ReplyDeleteIt's the whole of Working Links that has been bought, not just the CRCs. We were told this has been six months in the planning.
DeleteFrom Hansard, March 2014, PAC:
ReplyDelete"Ian Swales: What provisions will you make for the long- term ownership of these CRCs and what do you do if one fails? This is not a service that we can have failing for any length of time….What happens if the supplier just says, “You know what? We’re not making enough money out of this. Bye!” and so they go?
Antonia Romero: They would not be able to change ownership without discussing it with the MoJ.
Richard Bacon: As long as they talk to you about it, they can sell. That is not what you meant, is it? Or is it?
Antonia Romeo: I am deliberately trying not to find myself in a position where I reveal too much during the process of a live competition."
Antonia romeo and MOJ hang your heads in shame for allowing this! Government need to step in to end this appalling situation which will only get worse!
ReplyDeleteIt's still working links but the shares are owned by different investor. Cap Gemini and manpower sold and aurelius bought.
ReplyDeleteOh, that's alright then. Nothing's changed, except the ownership. Silly me!
DeleteWho is our employer?
ReplyDeleteWho can we trust?
ReplyDeleteWe cannot trust them! They have investments in saudi arabia which is not a democratic county. Appalling human rights and women lack basic rights we take for granted here. Does anyone know how to contact the probation inspectorate anonymously? I want to raise my concerns regarding enforcement and public protection. I think we should all be doing this!
ReplyDelete