LONDON (Alliance News) - Specialist services firm Premier Technical Services Group PLC said Monday it expects further organic and acquisitive revenue growth in the current year as order book strengthens and recent takeovers perform well.
Premier Chairman John Foley said the firm - which provides services such as steeplejack, electrical earthing and sprinkler systems - continued to see sales growth and "strong" levels of orders for the year to date. Working capital utilisation and margin and profit levels were also described as "in line" with its expectations.
In 2017, Premier Technical generated GBP1.8 million pretax profit on revenue of GBP52.9 million.
"Contract renewal rates remain high and a number of significant three to five year contracts and framework agreements have been signed across all disciplines with new and existing customers since the beginning of the financial year, underpinning our organic growth strategy," Foley added at the company's annual general meeting.
"The acquisitions completed last year are contributing significantly to the growth of the group," Foley continued. "We have been particularly pleased with the improvement in the contract renewal rates for BEST since its acquisition last year. In addition, we are seeing unprecedented demand for Fire Solutions with UK Sprinklers trading 50% ahead of the acquired business."
Premier acquired steeplejack firm Brooke Edgeley Ltd - or BEST - for GBP14.0 million in July 2017. It bought UK Sprinklers Ltd for GBP2.5 million in September 2017.
"The board is confident that the business is in a strong position to continue to grow both organically and through carefully selected acquisitions," Foley explained. "These acquisitions have allowed PTSG to evolve its highly compelling installation, service and testing offer and confidently target sector dominance in our markets that are underpinned by regulatory compliance and an increasing focus on regular testing."
Shares in Premier Technical were 1.5% higher at 175.00 pence on Monday.