Energy services firm Sureserve enjoys rising profit as demand increases in core markets
Sureserve enjoyed a rise in core profits of more than one-quarter last year, as demand grew in its two core compliance and energy services markets.
The Aim-listed company maintains and installs boilers, and makes sure homes are energy efficient among other services
Profit excluding exceptional items rose 26 per cent to £8.3m in the 12 months to September, reflecting “improved operational efficiency,” according to chief executive Bob Holt.
It comes after Sureserve sold off its construction and property services arms in a bid to become more efficient.
The company doubled its dividend to shareholders to 0.5p a share.
“I am pleased to report an excellent year of both operational progress and improved financial performance, with our results exceeding market and internal targets,” said chair Bob Holt.
“The focus on driving growth within our core divisions of compliance and energy services has paid dividends, yielding strong increases in group revenue and profit, while at the same time continuing to reduce our debt and improve our cash conversion.”
Sureserve said an increase in energy efficiency standards for social housing, as well as high fire safety standards in homes had helped drive demand. The latter is thought to be a direct result of the Grenfell Tower fire in 2017.
Analysts at Shore Capital Markets said its energy services division has “opportunities in large national and regional schemes to tackle fuel poverty”.
The firm added that trading in the current financial year has started well.
Sureserve’s £333.2m order book covers about 72 per cent of revenue, while it has maintenance contracts in place worth £409.6m.
Holt added: “”The group’s outlook remains positive and we are confident of continuing to deliver on our clearly-defined growth strategy, evidenced by the proposed dividend for the full-year of 0.5p per share.”
“We continue to have confidence in the visibility of our predictable, non-volatile revenue streams, underpinned by our established reputation for quality market-leading services in highly-regulated sectors.”
Shares rose nearly five per cent yesterday morning, before eventually falling back to around 2.3 per cent up at the close.
Main image credit: Sureserve