Housing support services group Connaught PLC (LSE: CNT) reported strong results for the year ended 31 August 2009. with "excellent" revenue and profit growth in both ITS Social Housing and Compliance operations.
Connaught operates in both the public and private sector. Its principle operations span the social housing, public sector and compliance markets.
The group recorded a 19% increase in revenue from a year earlier to £660m which resulted in profits before tax of £26.7m, an increase of 23% compared with 2008. Diluted earnings per share rose 11 percent to 13.5p, and Connaught is raising the total dividend by 18 opercent to 3.16p.
The substantially improved revenues were driven by strong organic growth of 17%. The company’s social housing and compliance divisions were the strongest with 18% and 11% organic growth, respectively.
Connaught recorded increased order intake of £760m, with 93% of Social Housing market forecast revenues already secured for 2010. The group’s order book growth continued, with a current value of £2.8bn, up from £2.6bn at the end of the previous full year, Connaught’s pipeline stands at £4.0bn.
Connaught chairman Mark Tincknell highlighted that the majority of the group's services are either non discretionary or essential in nature. As such he believes Connaught is "less susceptible to changes in government spending and the economic cycle".