Social housing energy services company Sureserve reports another positive full-year result following new contracts won by gas divisions
- Group turnover increased by 27% to £275.1 million for the year ended September 30
- Its three gas companies recorded double-digit sales growth
- Contracts won by Surreserve included a £68m deal with property developer L&Q
Energy services provider Surreserve has reported significant growth in annual sales and profits as its gas business continues to win a large volume of large-scale contracts.
Revenue for the group, which primarily serves clients in the social housing sector, jumped 27% to £275.1million for the year to September 30, while profit from continuing operations rose by £4m to reach £13.1m.
Its three gas companies achieved double-digit sales growth, supported by contractual price increase mechanisms that helped offset some of the high cost pressures experienced during the year.
Growth: Revenue at Surreserve, which primarily serves social housing clients, jumped 27% to £275.1m for the year ending September 30
They have also won a considerable number of new contracts, the biggest being an eight-year £68m contract with housing association L&Q to provide gas, repair and installation services.
Other contracts awarded included a five-year, £30million deal with property developer Longhurst Group and decade-long deals with Tower Hamlets and Southend-on-Sea borough councils.
Although the value of all contracts won by Sureserve fell by more than 30% from the previous year, the average duration of each contract is now six years instead of five, and its order book has increased by 18 % to reach £593.5 million.
The Kent-based company’s energy efficiency and renewables divisions, which include Everwarm and joint venture Warmworks, have also won numerous contracts from public bodies to deliver household improvements.
As part of its strategy, Surreserve aims to strengthen its presence as a major supplier of heating maintenance to the UK social housing sector, in part by doubling sales and buying up gas heating and green energy companies .
To that effect, it bought renewables specialist CorEnergy for £7.6million in December 2021, since then it has performed much better than management forecast.
Peter Smith, the company’s chief executive, said: “Last year we declared our ambition to be the leading provider of social housing energy services in the UK.
“We remain focused on pursuing a strategy of organic growth and acquisitions to increase our presence in the gas heating and renewable energy sectors, and our acquisition of CorEnergy has proven to be a successful addition to our expertise. in renewable energy.
“In a fragmented market, our defined strategy supports our ambitions to be a leading provider of energy services in social housing, delivering projects that matter at the forefront of the UK’s energy transition.”
Formerly known as Lakehouse, the company is set to benefit in coming years from the decarbonisation and efficiency improvements required for the UK’s notoriously drafty housing stock.
It said trading since the start of October had been strong and nearly 80% of its expected revenue for this fiscal year was covered by the expanded order book.
“In the context of a global energy crisis and a global trajectory towards sustainable energy sources, Sureserve’s strategy of balancing both renewables and gas makes sense,” said Neil Shah, CEO of Edison Group research.
Shares of Surreserve Group rose 3.9% to 87.8p late Tuesday afternoon.
