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Connaught turnover up 17pc on back of outsourcing

Connaught today reported a 17 per cent rise in half year turnover on the back of what it called a “once in a generation opportunity” for outsourcing.

Connaught’s turnover in the six months to 28 February 2010 totalled £355 million compared to £304 million in the same period a year earlier.

The group reported an adjusted pre-tax profit of £20.7 million, up 20 per cent from £17.3 million.

But after a £3.2 million of reorganisation costs Connaught’s pre-tax profit after exceptional items fell to £10.7 million from £13.5 million.

Connaught had a strong order intake of £403 million in the six months, compared to £385 million in the first six months of last year.

This contributed to a total order book of £2.9 billion, up from £2.7 billion at February 2009 while the group’s pipeline of orders increased 30 per cent to £4.9 billion.

Group revenue visibility stands at 96 per cent of 2010 expected revenues and 72 per cent of 2011.

In the latest accounts the directors said financial pressure in the public and private sectors is driving deep, structural change as customers seek to reduce cost whilst simultaneously enhancing service levels.

The directors said: “They are therefore carrying out fundamental reviews of their procurement strategies, leading to an increase in multi-service outsourcing.

“This represents a once in a generation opportunity for us to demonstrate how we can help our customers deliver long-term change.”

Chief executive Mark Tincknell said: “This is another good set of results as Connaught continues its strong growth in all three of its divisions.

“Specifically, our client base is looking to us to help them cut costs in the face of budget constraints, and with our integrated business model we are well positioned to deliver these savings.

“This trend is reflected in our orderbook which is growing at a fast rate, and I look forward with excitement and confidence.”