PHS lifted by acquisition spree

UK-based hand dryers-to-office pot plants group PHS posted a 20.6% rise in annual profits today after a major acquisitions spree boosted business.

The group, which spent £61.6m (€92.6m) on new companies in the last financial year, said pre-tax profits increased to £43.5m (€65.4m) – in line with analysts’ expectations.

PHS also posted 4% growth in like-for-like sales in the year to March 31 after strong demand for products including water dispensers, air fresheners and mats.

Chief executive Peter Cohen said the group’s strong financial position made him confident of “another year of profitable growth ahead”.

PHS, which has about 110,000 customers, announced last December that it was on the look out for acquisitions.

It spent £61.6m (€92.6m) on 18 businesses in the year to March 31, including the £25m (€37.6m) purchase of Manchester-based washroom services firm Airstream Services and the £14m (€21m) acquisition of Johnsons Washroom Services.

These purchases helped lift turnover by 18.1% to £165.3m (€248.6m) during the year. The company’s washrooms division, which provides equipment and servicing and contributes 80.9% of group operating profits, recorded an 18% rise in operating profits.

A number of new products and services were launched during the year, including Ambiscent – an air freshener for large rooms – and a range of new air filtration products.

Water cooler business Waterlogic also showed strong growth with operating profits up 42.8% during the year. This division focused on winning new business, signing contracts with groups including Pizza Hut and credit card provider MBNA.

Mats business Treadsmart posted a 30.4% hike in operating profits as it benefited from a shift towards reduced costs, improved prices and speciality mats – which include crush resistant and temperature resistant mats.

Meanwhile, operating profits at containers rental business Teacrate and tropical plants provider Greenleaf were ahead by 7.6% and 4.7% respectively.

PHS said it planned to further develop its existing businesses, as well as make more acquisitions.

The total dividend for the year was 1.70p, up from 0.55p previously.