Sureserve Group PLC (AIM:SUR), the social housing energy services (SHES) group, said almost all of this fiscal year’s expected revenue is covered by the order book.
The company asserted in its interim results statement covering the six months to the end of March that it is strategically positioned to deliver clear growth in its market-leading SHES businesses.
Cost increases being experienced across the industry may have an effect on this year’s performance but mitigating actions have been taken to minimise the impact.
Revenue in the first half of the current fiscal year jumped 24.0% to £126.2mln from £101.8mln in the corresponding period 12 months earlier, while earnings before interest, tax and amortisation (EBITA) rose by a similar percentage to £6.7mln from £5.4mln. The EBITA margin edged up to 5.3% from 5.2%.
Profit before tax from continuing operations improved to £4.33mln from £3.22mln the year before. The two businesses it has up for sale, Sureserve Fire and Electrical Limited and Precision Lift Services Limited, continue to perform well.
“The performance during the first half of 2022 reflects Sureserve's market-leading position and delivery of quality social housing energy services. We remain focused on pursuing the growth strategy which we announced earlier this year and continue to review potential acquisition targets, with the aim of purchasing businesses which are both services and earnings enhancing, whilst maintaining our price discipline,” said Nick Winks, the non-executive chair of Sureserve.
“The business continues to benefit from high revenue visibility gained from the long-term nature of our local authority and housing association contracts and the £512m order book covers 96% of our expected revenue for the FY22 financial year,” Winks continued, adding that the company remains confident in the prospects for the second half of 2022.