Spice profits up 41%

UTILITY support services group Spice announced another set of strong figures with profits up by 41% and plans to continue on the acquisition trail in the new year.

The Leeds-based group saw profits before tax, exceptional items and amortisation up 41% to £14m in the six months to October 31 on revenue up 34% to £192.6m.

It has upped its interim dividend by 20% to 0.36p.

Chief executive Simon Rigby said the group is well placed to benefit from new climate change legislation.

“We expect the Climate Change Act, which was brought into law in November, will create a number of new legislative drivers and opportunities for us. We remain confident about the second half of this financial year and beyond with any short term softness in our facilities market place expected to be offset by ongoing strength in our energy and utility markets,” he said.

Mr Rigby said that Spice is a “boring business with very long-term contracts” but said that in the current economic climate “market sentiment is turning towards the boring businesses”.

“We are also extremely pleased to have converted 100% of EBITA into operating cash flow and the conversion of profits into cash continues to be a feature of our business.”

He said that the group is on course to hit market predictions of a 44% profits increase in the full year.

Mr Rigby said it made three acquisitions in the first half and expected to complete a further three before the end of its financial year.