Entu eyes acquisition targets

HOME improvement group Entu is pursuing acquisition opportunities in order to broaden its customer base as it announced its half year results, which saw profits fall by a third.

The Manchester-based AIM-listed company posted a pre-tax profit of £3.8m for the six months to the end of April – 31% down on a year ago.

Revenues fell by 6% to £52.9m and basic earnings per share dropped to 4.1p from 6.5p.

However, the group said the performance was in line with management expectations against “unusually high prior year comparators”.

In March, the group bought the entire issued share capital of Astley Facades including three subsidiary companies, giving Entu complementary commercial cladding operations across the UK. 

On the possibility of further acquisitions, the group said: “We are currently exploring a number of opportunities in a variety of complementary sectors that will allow the group to fulfil its long term goal of creating major opportunities for the cross selling of multiple products to multiple customers. We also continue to pursue strong organic growth.”

Chief executive Ian Blackhurst said: “Entu continues to benefit from its market leading positions, strong brands and comprehensive product offering.

“Our primary strategy is to focus on driving organic growth from our integrated product portfolio, supplemented by the agreement of corporate contracts both through the existing group and through complementary acquisitions, with the aim of broadening the group’s ultimate customer base.

“The total future orderbook across the group has now grown to approximately £30m from around £10m at the same time last year. This will benefit both the current year and beyond as the group steps up its operational activities.

“We have seen and continue to see increased activity levels in the second half, and we remain on track to meet market expectations for the full year.”

Entu declared an interim dividend of 2.67p per share compared with nil a year ago.

The group operates four business segments: home improvement products, energy generation and energy saving products, repairs and renewals services and insulation products.

Entu said margins in its core home improvements business had improved in the period, and that it had recently signed an agreement with an unnamed national DIY retailer.

“We have created a strong platform for further organic and complementary acquisitive growth, and have secured a number of corporate contracts that place the group in a stronger position. Deliveries under these contracts have commenced and form an important element of our second half trading performance.”