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Baqus

  • BY: Andrew Hore |
  • POSTED: 27/10/2008 |

Quantity surveyor Baqus reported a 56% increase in pro forma profits in the year to June 2008.

Baqus was formed from the merger of three firms on 14 December 2007 so the stated figures are for little more than six months and there are no comparatives. The pro forma figures show a rise in revenues from £6.97m to £7.7m in the year to June 2008.

The profits jumped from £632,000 to £985,000. Work on integrating the businesses started before December last year but the full benefits have not showed through as yet. There will be more cost savings from closing spare offices in London and Oxford. A further £100,000 of annualised cost savings are expected.

Public sector and budget hotels business continues to be strong. The government looks set to continue to spend on infrastructure. The order book is worth £9.6m and stretches out over more than one year.

Baqus is paying a final dividend of 0.11p a share, taking the total for the year to 0.17p a share.

Baqus had cash of £2.48m in the bank at the end of June 2008 and even if loan notes are taken into account the net cash figure was nearly £1m.

The acquisition of education specialist Sworn King for up to £377,000 has been announced since the end of June. Baqus also has an option to buy rail infrastructure specialist Brian Hannaby & Associates – this is dependent on the business winning a specific contract.

The cash pile puts Baqus in a strong position when it is looking for new acquisitions. It plans to make two or three purchases each year. There are large geographical gaps in the North East and Scotland in particular.

This is a good time to be looking to acquire although management point out that they have to be wary of businesses that have historically made high, but not currently repeatable, profits.

At 4.25p a share, Baqus is valued at £4.81m.

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