‘Green’ support services group Eaga sounds confident after increasing annual pre-tax profits 33 per cent to £37.7 million.
‘Green’ support services group Eaga sounds confident after increasing annual pre-tax profits 33 per cent to £37.7 million.
The fully-listed company, which works with government, local authorities, utilities and other commercial concerns to achieve residential energy efficiency and carbon emission reductions, grew turnover 15.6 per cent to £739 million in the year to May. Eaga, whose growth was enhanced by acquisitions, increased earnings 26 per cent to 13.4p a share and proposes a final dividend of 2.4p a share, for a full-year payout 16.6 per cent up at 3.5p a share.
Chairman Charles Berry says the company, which closed its financial year with cash doubled to £31.9 million, is focusing on opportunities in business process outsourcing, domestic heating and residential carbon saving, where he argues it is ‘well positioned’ for further growth. Eaga extended its contract with the Government’s Warm Front fuel poverty programme to March 2011, with provision for a further two-year extension and increased its carbon emission reduction activities with six major utilities, saving an estimated 9.1 million tonnes of CO2 in the process.
Drew Johnson, described by Berry as the ‘key architect’ of Eaga’s commercial strategy, replaced the retiring John Clough as chief executive in April and in the same month Roger Aylard, ex-head of UK investment banking at Deutsche Bank, became a non-executive director.
Berry says trading in the first quarter of the current financial year has been ‘in line with expectations’ and argues Eaga’s secured sales order book delivers ‘strong revenue visibility for 2010’.
