GSH lifts interim turnover to £88m

GSH, the facilities management group, has unveiled an interim pre-tax profit of £3.5m which represents a margin of 3.9%.

Latest financial figures, covering the six months to 31 January 2008, show turnover higher at £88m.

GSH made a margin of 5.1% in the comparable period in the previous year, when turnover of £70m generated a profit figure of £3.5m.

Stuart Graham, chairman, said: “We are encouraged by the prospects for the second half of the year and for the longer term. The business is in excellent shape and we have a record orderbook.”

During the latest period, turnover increased by 25% in the UK, 10% in mainland Europe and by 74% in the US division.

Operating margin eased back as a result of “investment in the direct cost base, particularly in the US, to support future growth”.

The orderbook at the end of the period ran to £610m (comparable figure at the end of the previous period: £520m).

Contract wins since the period-end have added a further £260m to this tally.

GSH says that its orderbook balance shows:

• 22% of contracts are within the public sector
• 25% financial services
• 13% telecommunications and ICT
• 8% retail
• 13% others

GSH’s operational review shows that the UK and Eire business accounted for £69m of group turnover, up £13m on last time round, as a result of new awards and extensions to existing contracts.

HBoS, a client for the last eight years, has undertaken a strategic review of its property and since the end of six-month financial period end GSH has been awarded a five-year contract for the entire HBoS estate.

The client’s property portfolio comprises 1,600 properties throughout the country as well as 1,400 High Street retail sites, 140 employment sites and commercial buildings. There are also two European 24/7 critical data centres.

The deal is worth £250m over five years.