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BSS Group sees profits drop 24%

Plumbing and heating merchant group BSS group has reported a fall in pre-tax profits for the year ended March 31 on revenue that inched just 0.9% ahead.

BSS Group sees profits drop 24%

Sales were £1,352.4m compared with £1,340.6m for the previous year, although second half revenue increased by 7.2% and like-for-like sales were 6.6% ahead in the fourth quarter.

Pre-tax profits, at £44.2m were 24% below the 2009 figure.

The group reports that the core repair and maintenance markets remained resilient throughout the year and that the new revenue streams generated £54m, 76% growth on 2009.

The Domestic Division, which includes PTS and F&P, has started to see improvements and across the group there are now 439 branches, with 18 of them opened during the financial year.

Gavin Slark, group chief executive, said: “BSS has delivered sector leading results with revenue growth and earnings resilience despite the toughest year for the economy in more than 70 years.

“A robust balance sheet and strong cash flow has underpinned continued investment in the business throughout the recession. We remain well positioned to take advantage of economic recovery.

“Quarter four results were encouraging and the new financial year has got off to a strong start. Like for like revenue in the first seven weeks of the new financial year is 9.7% up on last year.

“Our confidence in our future performance has increased and we are pleased to recommend a 10% increase in the final dividend.”

During the year the group acquired drainage and civils specialist merchant UGS.

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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