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Manufacturing & engineering

Sureserve grows profits by 56% in first half

Sureserve Group PLC (AIM:SUR) has reported a 56% increase in profits for the half-year to 31 March, 2023 just prior to when it agreed to a takeover by private equity firm Cap10.

Revenue from continuing operations increased by 23% to £155.3mln in the period and underlying earnings (EBITA) by 41.2% to £7.2mln.

Profit before tax increased to £6.7mln from £4.3mln a year ago.

With 44 contract wins in the period, the company's order book swelled by 10.9% to £567.7mln and orders within it cover 98% of full-year expected revenue.

Net cash grew to £14.4mln from £11.8mln a year earlier.

Sureserve chief executive Peter Smith said the performance was supported by “non-discretionary, regulatory led spend alongside the government's continued emphasis on a net zero target for carbon emissions by 2050 with current legislation supporting this target”.

With the board having agreed the all-cash offer from Cap10 on 21 April, the deal is expected to complete in July.

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