Pre-tax profit for social housing specialist rises to £13m as order books hits £1.7bn

The share price of social housing maintenance specialist Connaught rose 3% this morning as it reported a 46% increase in pre-tax profit.

Shares rose 3.4% to 223.75p per share on the news that pre-tax profit was £13m for the year ending 31 August up from £8.9m. The profit rise was on the back of a 25% increase in revenue to £300m, up from £240m the previous year.

The company was upbeat about future performance saying that 95% of 2007 and 84% of 2008 forecast revenue was already supported by its £1.7bn order book.

Social housing, Connaught’s biggest division, grew revenues by 27% to £260m. Chairman Mark Ticknall said the group was well positioned to grab a bigger slice of the £12bn social housing market.

The compliance arm, which operates as a gas servicing business, posted a 12% increase in revenue to £40m.

Ticknall said: “Connaught is well positioned to continue its strong earnings growth through leading positions in highly attractive markets. We intend to continue developing these positions primarily through organic growth; however this growth will be assisted by carefully selected acquisitions that will be made to support the integrated services offering in both divisions.”