The Preston headquartered company, which was backed by private equity firm LDC in July 2007, said its twin-track growth strategy - of targeting new services and new territories - had increased sales to £46.8m (2008: £45.3m) for the 12 months to 31 August 2009.
It said new client relationships had been secured in the Midlands, Yorkshire and North East of England – as well as its North West heartland – while a growing percentage of its order book relates to reactive maintenance agreements and new build social housing projects, as opposed to traditional planned maintenance agreements.
Contracts secured during the period included a national framework with Places for People (PFP) with an estimated value of £40m and a £5m contract with Helena Housing to implement a range of carbon reduction measures, including the installation of solar technology and so-called smart meters.
Forrest also said it had grown operating profits 17% to £5.5m (2008: £4.7m) over the same period, thanks to efficiency improvements across the group.
The results are the first to be announced under the group’s newly appointed Chief Executive Officer, Lee McCarren, who joined the 55 year old company in September earlier this year.
Commenting on its performance, McCarren said: “Our strategy continues to provide new opportunities for sustained growth in our core market of social housing, while increased efficiencies have enabled us to accelerate earnings during the period.
“Together with our reputation for high quality, customer-focussed service and highly skilled teams, we’re in a strong position to take advantage of continued demand within the sector.”
Jonathan Bell, Investment Director at LDC – the private equity arm of Lloyds Banking Group - said: “This is another strong financial performance for the business, which has proven its ability to continue growing despite some of the industry’s most challenging conditions for several decades. Its culture of commitment to customer service is helping it to secure an expanding and increasingly loyal customer base.”
The company also said it would be further strengthening its board with a series of new appointments to be announced in the New Year.
Forrest (previously Herbert T Forrest) was established in 1955 as a small joinery and manufacturing firm in Preston. Today, it refurbishes or maintains over 18,000 homes per annum for a wide range of clients throughout the north of England and the Midlands.
NOTES TO EDITORS
Lloyds TSB Development Capital (‘LDC’) www.ldc.co.uk
LDC (Lloyds TSB Development Capital) is part of the Lloyds Banking Group and is authorised and regulated by the Financial Services Authority.
LDC has, since 1981, completed over 400 investments, has ongoing interests in over 60 businesses across the UK.
LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
LDC invests in a broad range of sectors and has particular experience in financial services, healthcare, industrials, IT & software, leisure & media, retail & consumer, and support services.
LDC is the leading private equity company in the UK mid-market. Recent transactions include investments with 1ST – The Exchange, Ansa / Independent Inspections, Evander Group, Cranswick Pet & Aquatics, Modelzone, Nuclear Engineering Services Limited, Quantum Specials, and Snell Limited plus exits from ATP, ghd and Telecom Service Centres.
LDC has fourteen offices – Aberdeen, Amsterdam, Birmingham, Bristol, Edinburgh, Hong Kong, Leeds, Liverpool, London, Manchester, Newcastle, Nottingham, Reading and Southampton.