Premier Technical Services trading well after acquisition spree

Niche specialist services provider Premier Technical Services Group announced its final results for the year ended 31 December on Wednesday, with group revenue up 35% to £52.9m.

The AIM-traded firm reported strong underlying organic revenue growth of 11%, and gross profit growth of 33% to £27.1m.

Its adjusted operating profit improved 35% to £10.6m, with adjusted profit before tax up 36% to £10.2m.

Adjusted earnings per share were 28% higher at 9.73p, and the board confirmed a 14% rise in the final dividend to 0.80p.

On the operational front, a divisional reorganisation was unveiled in the second half of 2017, which the board said would align its business with customer needs and industry demands, which had so far been well received.

Three acquisitions were completed during the year, with all said to be performing well.

Nimbus was now fully integrated, the integration of BEST was 90% complete, and UK Sprinklers was fully integrated and trading 50% ahead of the acquired business with a strong order book and pipeline.

Premier Technical Services said its renewal rate increased to 88%, alongside strong performance from the group sales team.

“PTSG delivered a record performance in 2017, driven by strong organic growth and a number of highly successful acquisitions, including the largest acquisition made since the group's IPO in February 2015,” said chairman John Foley.

“During the year the group took steps to diversify and reorganise the business, to further strengthen its foundation for future growth.”

Foley said trading in 2018 had started well.

“We continue to review a number of acquisition opportunities and the board is confident that the group's positive organic revenue and profit momentum will continue throughout the year.”