Strong growth for Forrest
Social housing specialist Forrest saw its sales rise 30% in its last financial year and profits rise 16%.
For the year ending 31 August 2011, Forrest’s sales reached £67m, up from £52.3m the previous year and £46.8m in 2009.
Recurring Ebitda (earnings before interest, taxation, depreciation and amortisation) was £7m (2010: £6m; 2009: £5m).
Steady growth has come from framework agreements in the social housing sector across the north of England and North Wales as well as new service lines.
The rise in profits comes despite reinvestment in a new environmental services division, new IT infrastructure, and new regional service centre in Bolton.
Forrest, which is backed by private equity firm LDC, says that its forward order book is currently the strongest in its history. More than 90% of forecasted income for the year to 31 August 2012 is confirmed.
Chief executive Lee McCarren said: “Our three point focus on broadening the scope of our existing long-term framework agreements through complementary new service lines, expanding our geographical footprint across the North and on establishing new client partnerships has helped us to achieve a tenth consecutive year of outstanding growth.
“We’ve maintained significant investment into our capability, capacity and people against a difficult economic backdrop, this investment has prepared us to help meet the emerging needs of our clients alongside the delivery of essential services, helping us to continue on a solid path for future growth.”
Chairman Robert Morgan added: “Forrest’s sustainable and integrated services model has once again seen it maintain impressive growth and profitability. Strong business management and sound financial control together with a commitment to quality delivery has been the key to its success.
“Moving forwards, its balance sheet remains strong providing it with the fire power needed to sustain investment for continual growth and to remain responsive to shifting market dynamics.”
Forrest (previously Herbert T Forrest) was established in 1955 as a small joinery and manufacturing firm in Preston. Today, it manages 62 formal partnering contracts throughout the north of England.
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