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 levels of revenue and profit in H118 including good organic growth and contributions from three FY17 acquisitions that are now fully integrated. It also demonstrated the benefit of diversity, overcoming short-term variations in individual sub-sector activity levels. A good underlying cash flow performance and 13% increase in the interim dividend completed the H1 trading picture. In October PTSG undertook a £20m placing and acquired Guardian Electrical Compliance (a complementary national testing and compliance company) for £12m. On 21 January, it acquired Trinity Fire and Security Systems (an electrical/electronic fire and integrated security systems specialist) 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 also noted that FY18 ended in line with expectations.
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.