Siteserv doubles operating profits

Building services group Siteserv almost doubled its operating profits and more than doubled its turnover in the six months to the end of October, showing little sign of damage from the slowdown in the housing market.

The group reported operating profit of €6.3 million, which was up 97 per cent year-on-year, on turnover of €35.5 million, with the performance enhanced by the contribution of its recent acquisitions.

The pretax profit was €4.8 million, compared to €2.5 million in the six months to the end of October 2006.

The results include a half-month contribution from Sierra Communications, which had revenue of €2.1 million and operating profit of €380,000, as well as contributions from Rent-a-Fence, Donohue Scaffolding, Holgate Fencing and Easy Access for the six-month period.

Its most recent purchase, Roankabin, is not included in the figures, but had audited turnover of €13.2 million and earnings before interest and tax of €900,000 in 2006.

Chief executive Brian Harvey said Siteserv would continue to seek new acquisitions in Ireland and the UK.

Davy Stockbrokers analyst Robert Gardiner said the profits for the six months were "an excellent result", given the backdrop of the weak Irish housing market.

Goodbody analyst Peter Gunn noted that the deals made by Siteserv were designed to reduce the company's reliance on the weakening domestic housing market, which it now estimates accounts for less than 30 per cent of its operating profit.