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Apollo revenue increases

Social housing specialist Apollo saw revenues increase in the year to March 2011, despite “increasing resistance” from institutional lenders and banks to invest in housing schemes.

The firm, which unveiled a plan to merge with Keepmoat in July, saw revenue at £367.2 million in the 12 months to March 31 2011, and a pre-tax loss of £7.2m.
This compares with £299m of sales and a loss of £7.9m in the 10 months to March 2010, when reporting was amended after group restructuring.

Apollo said the loss was down to the cost of servicing £145.5m of its debt, taken on by its parent company Cavendish Square Partners.
Earnings for the year to 31 March 2011, before interest, tax depreciation and amortisation (EBITDA), were up 8.9 per cent to £23.9m. Apollo said it also has an order book of £800m and a bid pipeline of £2.3 billion.

Chief executive Dave Sheridan said: “I am pleased to report on an excellent full year performance by Apollo with strong growth in revenue and EBITDA, despite the difficult economic environment.

“These results serve to reinforce the focus we have applied over the past three years to become a successful national provider of integrated property services.”

But it said its clients, including councils, arms length management organisations (ALMOs) and registered social landlords (RSLs), have all been subject to “increasing resistance from institutional lenders and banks to invest in Housing schemes”.

The firm said it has grown services to include reactive maintenance and highlighted social housing new build as a key area for investment, while it has also acquired maintenance provider FWA West Limited. It intends to increase its activity in these areas to over 50 per cent of Apollo’s turnover.

The Office of Fair Trading is currently considering the Keepmoat merger, which the companies hope will create “market leader in community regeneration and social housing”.

Apollo was the subject of a buy out in August 2007, backed by Bank of Scotland Integrated Finance (BOSIF) through a combination of debt and equity. Cavendish Square Partners, a special purpose vehicle and joint venture between Coller Capital and Lloyds Banking Group, then bought a 19.9 per cent stake in Apollo in July last year, with the rest owned by Apollo’s directors.

It repaid £4.5 million of its debt during the year, taking cash to £32.1m. The firm reported £67.4m of net assets, largely intangible.

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