Unidare will generate a pre-tax profit of less than £7.25 million this year, the group has warned. It follows the purchase of Oklahoma Rig & Supply Company (ORS). The results will include a three-month contribution from ORS, provided Unidare shareholders agree to the acquisition. If this is excluded, it appears that underlying profits will fall by at least 17 per cent this year.

Unidare has circulated shareholders with details of the proposed ORS acquisition, outlined last month, for up to $60 million (€58 million). There will be an initial payment of $35.1 million and the rest will be paid provided certain targeted earnings are achieved up to 2003. The earn-out depends on an annual growth in sales and profit of 30 per cent.