Lucrative contract wins lift profits at Siteserv to €4.8m
Profits at Siteserv, the Irish company involved in services from traffic light repairs to scaffolding, posted operating profits of €4.8m in the six months to the end of October -- up 4pc on the previous year.
Revenue at the group for the period climbed 9pc to €92.2m as the firm delivered on a number of new contracts.
Siteserv subsidiaries secured business, including a three-year, €40m extension to a contract at a UK refinery, a contract with the ESB worth €2m and a €10m maintenance contract for three power stations in Britain.
Siteserv chief executive Brian Harvey said the recent contract wins had given the firm visibility over its revenue and profit streams for the next three years.
In the first half of its financial year, Siteserv also secured a new €10m banking facility.
Its Irish support services business has a three-year, €60m contract with BSkyB. The company also has a contract with UPC.
But Goodbody Stockbrokers analyst David O'Brien warned that until Siteserv's €150m debt pile was reduced, investors were likely to "remain on the sidelines".
Shares in the company were unchanged at two cent. The company has a market capitalisation of just €2.5m.
For the full financial year, Siteserv expects its UK division to outperform activity in 2011.
In the UK, which accounts for over half of Siteserv's business, revenue in the six months rose 12.2pc to €53.1m year-on-year, while operating profit was 12pc higher at €2.8m.