Premier Technical Services Group PLC (“PTSG”, the “Group”), the niche specialist services provider, announces its interim results for the six months ended 30 June 2015.
Group revenue up 40% to £11.7m (2014: £8.4m)
Gross profit up 27% to £6.4m (2014: £5.0m)
Operating profit up 30% to £2.4m (2014: 1.8m)
Expansion into steeplejacking via acquisition of Pendrich and NATHS
Renewal rates of 85%
Admission to AIM in February 2015 raising £5.0m in new funds
John Foley, Chairman of Premier Technical Services Group PLC commented
“The Group has made a very encouraging start to life as a public company with strong levels of profitable organic growth seen across our service offerings.”
Overview of results
PTSG’s results for the six months ended 30 June 2015 show very strong levels of profitable organic growth.
We were formally admitted to AIM on 11 February 2015 as a result of a successful IPO process which raised £5m of new funds for the Group and it is pleasing to produce a set of results to new shareholders which demonstrate that the IPO process has not distracted management from its central task of executing the Group’s clear growth strategy. The progress made in the first six months of 2015 enables the Board to declare an interim dividend of 0.46p a share, amounting to £0.4m. The interim dividend will be paid on 30 October to shareholders on the register on 9 October.
Turnover increased by 40% to £11.74m (30 June 2014: £8.4m). Gross profit increased by 27% to £6.39m (30 June 2014: £5.03m); EBIT increased by 30% to £2.4m (30 June 2014: £1.84m); underlying profit before tax before adjusting items increased by 20% to £2.35m (30 June 2014: £1.95m). Net debt at 30 June 2015 was £1.62m (31 December 2014: £5.0m). Adjusted EPS was 2.21p.
Profit before taxation after adjusting items was £0.7m. Adjusting items of £1.65m principally included share-based payments, deferred consideration payable to previous businesses owners who remain as PTSG employees and IPO costs. Fully diluted EPS (after adjusting items) was 0.28p.
We completed the acquisition of Pendrich Height Services and NATHS on 12 June 2015 for an initial cash consideration of £0.2m. Further consideration of a maximum of £1.74m payable over a three year period in cash or shares (at PTSG’s option) will be self funded from the after tax profits of the acquired businesses. These acquisitions expand the Group’s Electrical Services offering and enable us to offer a national steeplejacking offering to customers.
Substantial progress has been made in 2015 at an operational level with the strengthening of the management team with appropriate external appointments and internal promotions. Further investment has been made in the Group’s proprietary internal systems so that we can handle the increasing volume of low value transactions that is a feature of our business.
The organic growth achieved so far in 2015 has been particularly impressive in our Electrical Services division but all areas of the Group performed well. The opportunity to develop multi skill offerings to customers has been grasped during 2015 with the signing of a number of framework contracts with major FM customers. The integration of Pendrich and NATHS is ongoing and performance is in line with plan.
PTSG is a niche specialist services provider and offers customers a broad range of specialist services on a national basis. We have a tried and tested business model which is introduced into carefully selected acquisition targets.
We chose to become a publicly quoted company in order to accelerate our growth plans. We have identified a number of acquisition targets which can broaden the Group’s service offerings at sensible entrance prices.
The Group has made a very encouraging start to life as a public company with strong levels of profitable organic growth seen across our service offerings. This positive momentum means that we expect to exceed our pre IPO expectations in 2016 and beyond. We face the future with confidence and are excited about the growth opportunities which are available to us.
See results in full at PTSG.co.uk