OPERATING PROFIT at support services group Siteserv grew by more than 150 per cent in its last financial year to almost €19 million, the company said yesterday. Barry O'Halloranreports.
Siteserv, which provides services to the building, pharmaceutical and energy industries, said revenues in the 12 months ended April 30th were €133.8 million, close to three times the €45 million it reported in 2007.
Group operating profits were €18.7 million, more than double the €7.4 million that Siteserv earned last year.
Earnings per share were up 80 per cent at 10.1 cent from 5.5 cent. The group's operations generated €22 million cash flow, while net debt at the end of the year stood at €153.6 million. Over €100 million worth of acquisitions made during the 12-month period helped to drive growth.
These included its first venture into Britain in February, Deborah Services, which has a range of contracts in the nuclear power, petrochemical and electricity generation industries.
Siteserv paid £48.2 million sterling (€60 million) for the company. Its acquisition means that the Irish group now has a number of multinational clients, including Exxon, Conoco Philips and British Nuclear Group.
In the Republic, it acquired cabling and network specialist Sierra Communications for €52 million and Roankabin Holdings for €8.2 million. Siteserv paid for these purchases through a combination of its own resources and loans provided by Anglo Irish Bank. The group employs 2,200 people in Ireland and Britain.
Its chief executive, Brian Harvey, pointed out yesterday that the total annual turnover of all Siteserv's businesses, including those acquired during the year, now comes to €260 million.
"Acquisitions completed during the year have enabled us to broaden our infrastructure and utilities support service in both Ireland and the UK, which positions us well to deliver near- and long-term growth in these markets," he said.
During the year, the group set up three divisions - infrastructure and utilities, UK, and access - to manage the expanded business. Mr Harvey said yesterday that this year it will focus on consolidating the group and its acquisitions.
Siteserv results
Turnover:€113.8m +200%
Operating profit:€18.7m + 150%
Earnings per share:10.1 cent +85 %
