Utilities group posts record results following takeover by investment firm

Stockport-based energy and utilities contractor business, OCU Group, has reported a record annual financial performance.

The firm, formerly O’Connor Utilities before being acquired last July in a £400m deal by investment firm Triton Partners, said it enjoyed a year of strong growth in the period to April 30, 2022, underpinned by its role in building and maintaining key elements of the UK’s infrastructure.

Revenues rose 34% year-on-year to £295.2m, with expected revenues in the group’s current financial year to April 2023, to substantially outperform financial year 2022.

Pre-tax profits for 2022 were £40.5m, which compared with £22.7m in 2021.

The record results come as OCU announced a refocusing of its business to reflect its specialisms and the changing nature of the UK infrastructure market.

It has established two new divisions: OCU Utility Services and OCU Energy Services to align the group with future growth priorities. This replaces the previous O’Connor Utilities and Instalcom brands.

OCU Energy Services, led by Vince Bowler, will primarily focus on growing OCU’s increasing share of work as a key enabler of the energy transition, as the UK targets reaching net zero by 2050.

The company recorded strategically important wins in the year including building one of the largest battery energy storage sites in the UK and the roll out of EV chargers. It will also continue to reinforce power infrastructure in light of Ofgem’s recent electricity distribution network price determination.

OCU Utility Services, headed up by Adrian O’Sullivan will primarily focus on OCU’s regulated utility framework contracts, including those in the telecoms, power, and water sectors.

Also, OCU’s horizontal directional drilling business recorded strong growth and continues to support the group across various sectors.

OCU continues to invest in its specialisms to support its growth programme, including acquiring complementary businesses and making senior hires.

This includes the acquisition of Andrews Associates, a highly respected utility design and engineering consultancy and Opals and InICT which provide additional capability and geographical coverage.

Michael Hughes, OCU Group chief executive, said: “After a record year to April 2022 we have carried the momentum into our current trading period with revenues for the year expected to grow double digit setting up OCU for another record year.

“We’re investing heavily in both our business and people to better serve our existing and target customers and to ensure we’re ready to capitalise on the evolving strategic opportunities available to us.

“The refocusing of our business reflects both our strengths and the broader direction of the UK economy and UK infrastructure markets.

“Over the next decade we will continue to work diligently to become an increasingly important partner in building the energy and utility infrastructure that will transition the UK economy into one of the greenest in the world.”

In the past year OCU has made four acquisitions to deepen its expertise in sectors. Meanwhile, to bolster its senior team, it appointed David Taylor-Smith as non-executive chairman.

This follows the appointment of several key executives, including David Snowball as chief financial officer, Pinder Kang as chief strategy officer, Michael Cornwell as general counsel, and Mathew Edwards as head of M&A.

Michael Hughes added: “The investments made over the past year have put us in an enviable position for our next phase of growth.

“We will continue to pursue organic growth and assess strategic acquisition opportunities as they arise as well as invest in our senior team to support our ambitions.”