The financial results for the Group for the third quarter are in line with the Board’s expectations. The sales momentum has continued since the end of the second quarter in each of the Group’s divisions. Including the Servo and ICM acquisitions (consolidated from 1 November 2006 and 1 June 2007, respectively) Group revenues for the third quarter of the financial year were up 90% on the same period last year. Like for like revenues, excluding acquisitions, were 16% ahead of last year and operating margins were in line with the Board’s expectations.
As at 31 December 2007, the order book and annualised contract values had increased by 44% and 59%, respectively, as compared to 31 December 2006, with like for like increases of 1% and 5% respectively. Net debt including finance leases of £114m at 31 December was as forecast following the planned capital expenditure arising from the fit outs of the recovery centre and the hosting/data centre at Farnborough (which are now substantially complete), together with non recurring expenditure arising from the Group’s ongoing integration activities.
The integration programme is at an advanced stage and is progressing as planned. The Board are confident of achieving the anticipated synergy cost savings of £5m in the next financial year.
As the Group enters the fourth quarter, the new business pipeline continues to be strong, activity levels are buoyant in each of the markets that the Group serves, and the current financial year continues to progress in line with the Board’s expectations. The Group is well positioned in each of its chosen markets and remains confident in its organic growth prospects.