Sureserve Group eyes opportunity in UK energy transition

Sureserve Group PLC is a leading compliance and energy services group that performs critical functions in homes, public and commercial buildings, with a focus on clients in the UK public sector and regulated markets.

The group was founded in 1988 and is headquartered in Basildon and currently employs some 2,299 staff.

Sureserve Group PLC (AIM:SUR) said it continued to experience strong growth in revenue, earnings and cash flow and expects results for the financial year to be in line with management’s expectations.

Orders are 30% higher than the GBP356mln of a year ago, the gas accreditation and housing maintenance group said.

The order book reflects both the non-discretionary nature of its business, which is driven by mandatory inspections and accreditation requirements, alongside services for the government’s growing green agenda.

Net cash at the end of September 2021 was more than GBP16mln, it added.

Sureserve Group PLC (AIM:SUR) has won a ten-year contract extension with social housing group the Guinness Partnership for gas maintenance services.

Subsidiaries K&T Heating Services and Sure Maintenance were awarded the contract, which is for a minimum of 5 years and up to a maximum of ten and covers gas installation repair and upkeep,

Sureserve Group Plc (LON:SUR) won a long-term contract with a new social housing client worth an estimated GBP36mln in revenue.

The eight-year gas servicing, repair, installation and electrical testing contract is with PA Housing, a large registered provider of social housing that owns and manages more than 23,000 homes across the Midlands, London and the South East.

Sureserve Group PLC (AIM:SUR)’s extension of its multi-year gas service contract by up to 10 years with its long-standing client The Guinness Partnership underlines the growing quality of earnings, says Shore Cap.

Guinness Partnership is one of the UK’s leading owners of social housing and although forecasts are not changed, this major contract renewal underpins the existing estimates said Shore.

Given the long-term growth and earnings quality, the valuation remains compelling says house broker Shore at 11.6 times forward earnings and free cash flow yield of 6.3% despite the shares more than doubling.

Sureserve Group PLC (AIM:SUR) (AIM:SUR) Peter Smith joins Proactive London about their latest financial report with strong growth in revenue, earnings and cash flow.

The firm also expects results for the financial year to be in line with management’s expectations.

Orders are 30% higher than the GBP356mln of a year ago and net cash at the end of September 2021 was more than GBP16m.