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Sales and profits up at support services firm Eaga

Support services Eaga saw sales increase 3 per cent, to £762.2 million in the 12 months ended 31 May 2010, compared to £738.9m the previous year.

Pre-tax profits rose 7.5 per cent to £51m up from the £47.5m earned in the previous year.

Eaga is heavilty involved in the retrofit market and describes itself as the UK’s largest residential energy efficiency provider.

The firm is a direct benificiary of carbon energy reductions targets and did experience a slowdown as implementation of the CERT scheme was delayed.

The firm said: “Confirmation of the extension to CERT was made on 30 June 2010 and we are already seeing encouraging signs of improving demand following a slow-down towards the end of the 2010 financial year.”

The firm’s heating business was subject to increasing pressure across the financial year as excess supply in the delivery chain led to fierce competition for work.

In response to these pressures, it employed a strategy of not bidding for work on uncommercial terms which did slow the rate of growth but protected trading performance.

It expects a solid pipeline of work from the government over the medium to long term in its managed services division, which has been impacted by delays in signing off some government contracts.

The results statement said: “The general election and early action of the new Government has slowed down the procurement processes for a number of large Government outsourcing programmes. The resultant delays will inevitably impact on our Managed Services segment in the short-term, but we believe that Government’s stated need to drive efficiencies and cost savings will provide significant medium and long-term opportunities.”

The firm ended the financial year with £37.9m cash in the bank and showed confidence in its financial position by increasing its dividend by 10 per cent, to 2.64 pence.

 

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