Premier Technical Services Group (PTSG) is an independent provider of regulated and safety related specialist building services in four divisions across the UK. It listed on AIM in February 2015 at 52p.
PTSG delivered record revenue and profit in H118 including good organic growth and contributions from three FY17 acquisitions that are now integrated. It also demonstrated the benefit of diversity, overcoming short-term variations in individual sub-sector activity levels. Good underlying cash flow performance and 13% increase in the interim dividend completed the H1 trading picture. A £20m placing in October and acquisition of Guardian Electrical Compliance for £12m in the same month was followed on 21 January by the acquisition of Trinity Fire and Security Systems for an initial c £8m net cash. Taken together, investing the funds raised enhanced our previous earnings estimates by 13% and 16% for FY19 and FY20 respectively. Management has noted and reiterated that FY18 ended in line with expectations. FY18 results are to be released on 26 March.
Core markets are the provision of specialist services in the UK and demand is substantially underpinned by regulatory compliance in the construction and ongoing usage of buildings and structures and the safety of people in those environments. General and specific requirements are contained in wide-ranging legislation, regulation and guidelines.