Forrest, the privately-owned social housing support services group, has reported continued revenue and profits growth in its latest full year trading announcement.
The Preston headquartered company, which provides regeneration, refurbishment and responsive maintenance services to social housing groups and public sector organisations, said organic growth from new and existing customer relationships had increased sales 11.5 per cent to £52.3m (2009: £46.8m; 2008: £45.3m) during the 12 months to 31 August 2010.
Underlying operating profit (EBITDA) rose 9.5 per cent to £6m (2009: £5.5m; 2008: £4.7m) in line with revenue growth, while operating cash generation for the year exceeded reported EBITDA at £6.9m.
It said the group’s ability to provide ‘value for money, essential support services’ placed it in a strong position to continue its expansion, adding that market estimates for social housing spend in the North West remained strong with the vast majority of the group’s clients now outside of local authority control.
Its current forward order book is the strongest in the company’s 55 year history.
It said demand for the installation of carbon reduction technologies, such as solar panels, energy efficient boilers and smart-metering, had been particularly strong, as more social landlords tackle the low carbon agenda in order to drive down energy costs for their customers.
Although operating predominantly in the North West of England, Forrest said its expansion into West Yorkshire had been another driver of growth, adding that continued investment in the region would be made over the coming year as it seeks to become a partner of choice across the North of England.
Lee McCarren, Chief Executive Officer, said: “Our continued focus on delivering the best quality of service and fully integrated support services for our partners is helping to generate both loyalty from existing clients and significant new orders. Combined with our geographic expansion and investment in our teams, service lines, infrastructure and expertise, we see significant opportunity to continue growing our share of the market.”
Robert Morgan, chairman of Forrest, said “Despite challenging market conditions and several high profile business failures in the sector last year, Forrest has continued to demonstrate its ability to deliver sustained, profitable growth in its key markets. This has been achieved by a clear commitment to customer service, a focus on providing essential, integrated support services for social housing groups, and strong business and financial management.
“The group’s cash generation also remains ahead of budget, placing it in a strong position to continue investing for forward growth.”
Forrest (previously Herbert T Forrest) was established in 1955 as a small joinery and manufacturing firm in Preston. Today, it manages 47 formal partnering contracts and refurbishes or maintains over 20,000 homes per annum throughout the north of England.
The group, which is backed by private equity firm LDC, increased its workforce 10 per cent to over 500 in the last six months, including 50 apprentices. It also strengthened its senior management team last year with the appointments of David Banton (Commercial Director) and Mark Lyons (Operational Managing Director)
ENDS 24 January 2011
Issued on behalf of LDC by Citypress:
Martin Currie Emily Hargreaves
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