14th May 2015 08:45
LONDON (Alliance News) - Testing and advisory services company Exova Group PLC on Thursday said its revenue grew in the first four months and said it expects to meet its guidance for the year on its existing business, but will exceed guidance on the contribution from acquisitions.
Exova said revenue in the four months to the end of April was up 3.8% and rose by 4.7% in constant currencies and including the impact of acquisitions and disposals.
The company said it has seen good growth in its aerospace, health sciences and product divisions in Europe in the first four months, but has seen some contraction in oil and gas and industrials as a result of low oil prices.
Americas revenue was broadly flat in the period, with a return to growth in aerospace and as sustained demand for its long cycle, capital expenditure-driven testing services offset any oil price impact on the oil and gas and industrial divisions.
Exova said it expects to meet market forecasts for the year, but expects to beat its target of 3% revenue growth from acquisitions, driven by the acquisition of BM Trada Group Ltd for GBP22 million, which was completed this week. BM Trada provides product certification and building products testing services.
"I am pleased with our performance in the first four months of 2015. Organic growth is in line with our expectations, and we are making very good progress with acquisitions. The acquisition of BM TRADA reinforces our commitment to extend the range of services we offer to our clients and the geographic reach of our business," said Ian El-Mokademn, Exova's chief executive.
Exova shares were untraded on Thursday morning, having last traded at 194.75 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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