Social housing group Connaught boosted pre-tax profit by 39% from £9.7m to £13.5m in the year ended 28 February 2009
Turnover was up by 19% from £256m to £304m and the company said it was “well-positioned in large, defensive, fragmented markets which are naturally consolidating”.
Its order book stood at £2.7m at the year-end compared with £2.5bn the previous year, while net debt was £99.2m, a figure the company said was in line with management expectations.
Francesca Raleigh, an analyst at Numis, said: “Connaught is a defensive, above-average growth stock with the potential to add value organically and through bolt-on acquisitions.”
Meanwhile, northern social housing contractor Herbert T Forrest boosted turnover by 20% from £37.8m to £45.3m in the year to 31 August 2008.
Operating profit at the company was flat at £4.5m owing to IT investments and expansion that saw it open an office in Leeds.
Lloyds Development Capital (LDC) bought an undisclosed stake in the company last July.
Jonathan Bell, investment director at LDC, said: “Indicators for social housing and other public sector investment remain positive, despite the slowdown in the wider market.”
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