Contract wins help Forrest to branch out
SOCIAL housing firm Forrest grew sales by 28% to £67m in 2011 (2010: £52.3m) and said that earnings rose by 16% to £7m.
The Preston-based company, which is backed by private equity firm LDC, attributed the sales increase to to organic growth both from new and existing framework agreements with social housing landlords.
It said that the rise in recurring earnings before interest, tax, depreciation and amortisation (it did not provide a pre-tax profit figure) was achieved despite a significant investment in a new regional service centre in Bolton, new IT infrastructure for its operational teams and the creation of a new environmental services division, Forrest Green.
The latter offers carbon abatement services within the Government’s multi-billion pound Green Deal pledge aimed at improving the energy efficiency of houses. Through the division it has also developed a solar power operation to accommodate the growing demand for the installation of photovoltaic tiles.
Looking ahead, Forrest said that its forward order book for the remainder of its new financial year is the strongest in its history, with more than 90% of its forecasted income confirmed.
Chief executive officer Lee McCarren said: “Our three-point focus on broadening the scope of our existing long-term framework agreements through complementary new service lines, expanding our geographical footprint across the North and on establishing new client partnerships has helped us to achieve a 10th consecutive year of outstanding growth.
“We’ve maintained significant investment into our capability, capacity and people against a difficult economic backdrop. This investment has prepared us to help meet the emerging needs of our clients alongside the delivery of essential services, helping us to continue on a solid path for future growth.”
Company chairman Robert Morgan said the company’s balance sheet remains strong, which provides it “with the firepower needed to sustain investment for continual growth and to remain responsive to shifting market dynamics.”
