Specialist services provider PTSG said the Grenfell fire disaster in London has triggered a huge demand for fire safety and suppression systems.
The Castleford-based firm, which provides electronic fire prevention and sprinkler systems, said that although nearly two years have passed since the Grenfell tragedy, its effects are still resonating throughout the industry, with a call for a rigorous approach to compliance and testing within buildings.
The fire is thought to have been caused by an electrical fault within one of the apartments, which soon got out of control largely because of the building’s flammable cladding.
Last year PTSG bought M&P Fire Protection, which specialises in sprinkler and dry risers operations. PTSG said that M&P is now fully integrated and is trading significantly ahead with a strong order book and pipeline.
M&P said that if the Grenfell Tower had had a sprinkler system the fire would have been deluged before it got to the cladding and people would have had plenty of time to leave the building. It added that to date no-one has ever died in a fire with a sprinkler system in the household.
PTSG’s chief executive Paul Teasdale said: “A year after Grenfell there was a fire. Our sprinkler system put the fire out and 120 people were evacuated. Very few people have been killed in a building with a sprinkler system.”
He was speaking as PTSG reported a year of “exceptional growth” with record turnover and profits in 2018, and a strong start to 2019.
Revenues rose 31 per cent to £69m in the year to December 31 and adjusted pre-tax profits rose 40 per cent to £14.3m.
Analyst Julian Cater at Numis said PTSG’s 2018 results demonstrate strong organic growth, augmented by acquisitions, and improving cash conversion.
“The mix of the business is increasingly skewed towards testing and compliance, which is recurring in nature, higher margin and more cash generative. We reiterate our ‘buy’ recommendation and 250p price target,” he said.
PTSG said its renewal rate remained high at 88 per cent.
Mr Teasdale said: “That is an endorsement of the way we do business. Our clients very much vote with their feet. Our best sales technique is to do a good job.”
The group made two acquisitions in 2018 - M&P and Guardian Electrical Compliance. It said both firms are performing well.
It is now looking at other acquisitions.
“We’ve always got things on our mind,” said Mr Teasdale.
“There are a lot of exciting opportunities.”
The group has raised its final dividend by 13 per cent to 0.90p per share.
Mr Teasdale said: “PTSG is unique in the way it provides building owners and managers with the niche specialist services they need to operate at optimum efficiency.
“We have never strayed from our original vision of meeting a market requirement for a single provider of multiple expert services to the services and construction sectors.
“As we continue to pursue our business model, which combines acquisitive growth and organic growth, while delivering our unique bundled service provision, we enjoy year-on-year growth.”
Since the year end, the group has bought Trinity Fire and Security Systems for up to £16m.
Trinity is a specialist in the testing, maintenance and installation of fire and security systems,
PTSG called the deal transformational and said it will significantly extend its existing Fire Solutions business to offer a full suite of fire protection services.