Acquisitions help drive Premier Technical Services Group earnings higher

Specialist services provider Premier Technical Services Group reported a 31% improvement in group revenue in its final results on Tuesday, to £69.1m.

The AIM-traded firm said it saw “strong” underlying organic revenue growth of 19%, with gross profit up 29% to £35.0m.

Adjusted operating profit in the year ended 31 December was ahead 40% to £14.9m, while adjusted profit before tax also rose 40%, to £14.3m.

The company said adjusted earnings per share were 22% higher year-on-year at 11.86p, with the board confirming a 13% increase in the final dividend, to 0.90p.

During the year, the company successfully completed an equity raise of £20m before expenses to support acquisitions, with two acquisitions completed in the year, both said to be performing well.

The first acquisition, M&P Fire Protection, had reportedly enhanced the group's scale and geographic coverage in its sprinkler and dry risers operations.

Premier Technical Services Group said M&P was now fully integrated, and trading “significantly ahead” of the acquired business with a strong order book and pipeline.

The second acquisition, Guardian Electrical Compliance, had increased the company’s presence in the electrical safety services market.

Guardian had traded well since acquisition, the board said, and was now expanding into Scotland and increasing its remedial offering.

Its proprietary software platform, ‘TraQ-it’ software, would be combined with ‘PTSG Clarity’ to strengthen the group's service offering.

Premier Technical Services Group said its renewal rate remained high at 88%, which was underpinned by “strong performance” from the group sales team.

Post period-end, the firm completed the acquisition of Trinity Fire and Security Systems on 21 January.

The board said the “transformational acquisition” would significantly extend the company’s fire solutions division, to offer a full suite of fire protection services.

“The second half of 2018 saw the group make two further acquisitions, raise fresh equity proceeds of £20m and continue to deliver further healthy levels of organic turnover and profit growth,” said Premier Technical Services Group chairman John Foley.

“As a result of all these factors, I am pleased to report that record levels of turnover, gross profit, adjusted EBITDA and adjusted earnings per share were achieved in the year.”

Foley noted that, subsequent to year-end, the company announced the acquisition of Trinity Fire and Security Systems, claiming it had “greatly increased” the size and offering of its fire solutions division and percentage of turnover from recurring and maintenance activities.

“2019 has started well as we continue to deliver against our strategy to seek sector dominance in the markets we serve, and the board is both confident and enthusiastic about the group's prospects and performance.”