Bright future in store for Connaught
October 14th 2008
Connaught, one of the market leading providers of integrated services to both the public and private sector in the UK, has today reported another set of very strong results. Revenue rose 40% to £553m, with profit up a record 87% to £30.7m and the Group’s order book now stands £2.6bn leaving the Group well positioned to deliver consistent growth despite uncertain economic conditions.
Connaught operates in two highly attractive markets: social housing and compliance. Connaught is the market leader in the fast growing, highly defensive social housing market. The social housing market is currently valued at £10.5 billion and is underpinned by the Government’s commitment to improve and maintain the quality of social housing throughout the UK and by the non discretionary and essential nature of much of the expenditure. For most social landlords their supply chain is fragmented and costly to administrate which is leading many to seriously consider an integrated services approach. The Group has established its integrated services capability by developing an unrivalled range of services, largely self-delivered and underpinned by its in-house technology, Conntrol. Furthermore, with the top 10 players having a 21% market share, the Group continues to see excellent growth potential in its Social Housing division.
Connaught’s Compliance division is one of the leading providers of safety, health and risk management solutions. Compliance is a highly attractive market worth an estimated £5.7 billion per annum and growing at 7-8% per year. Expenditure on compliance services is largely non discretionary making it a highly defensive market to operate in. The company has made five acquisitions since 1 September and is now the market leader in compliance, being the only UK provider of an integrated services solution offering both an advisory and servicing capability. This makes Connaught extremely well positioned to continue growing in the foreseeable future.
Mark Tincknell, Chairman, said:
“I am delighted to announce another set of very strong results. Over the years, we have built a strong and balanced business based on our leadership position in two growth markets with highly defensive characteristics and robust cash generative qualities.
Both the social housing and compliance markets are underpinned by essential and largely non discretionary expenditure. They remain highly fragmented providing the Group with significant opportunities for further organic and acquisition growth. This year’s results reflect that strategy whilst ensuring our future prospects are well and truly enhanced.
I am confident about Connaught’s future. We have a strong experienced management team and are well placed to continue to deliver high quality earnings growth for many years to come.”