PTSG posts record sales as its recent acquisitions perform well

The Castleford-based firm said it has secured a number of new contract wins and its recent acquisitions are performing well.

Chairman John Foley told shareholders at the firm’s AGM: “I am pleased to report that the group has achieved record sales in the year to date, particularly in the installation divisions, and that working capital utilisation and profit levels are in line with the board’s expectations.

“Our contract renewal rates remain high at 85 per cent and the group has secured new contract wins across all its disciplines, including a number of multi-discipline framework agreements with new and existing customers.

“The six acquisitions completed in 2015 are delivering healthy contributions to turnover and profit and have been successfully integrated into the group.”

He added that the business is in a strong position to continue to grow both organically and through carefully selected acquisitions. Analyst James Tetley at N+1 Singer said: “PTSG’s AGM statement highlights a positive first half performance with record sales year to date, particularly in the installation businesses.

“In its first year as a public company, PTSG exceeded expectations. We see scope for outperformance, through organic contract momentum and a return to the acquisition trail after a period of consolidation.

“In our view, the growth trajectory (pre-tax profits up 42 per cent in 2016) is not reflected in the current rating.”