Silverdell expects 100 per cent revenue increase

Environmental support services group Silverdell estimates a 100 per cent rise in half-year revenues following the acquisition of EDS Group Holdings.

The company, which completed the acquisition of the provider of decommissioning and dismantling services last June, forecast revenues to be at least £62m for the six months to March 31st 2013, compared to £31.4m a year earlier.

Silverdell said it has been trading in line with expectations with good progress made across its Canadian and Australian operations, including the Hydro Quebec site.

However, market conditions in the UK remained challenging throughout the first half.

At the end of the period the order book stood at £210m, up from £133m, with recent contract awards including a £2.5m decommissioning and remediation contract for a chemical manufacturing facility in Scotland and £1.5m of remediation works on a pet food plant in the Midlands.

"We have a strong tendering pipeline of over £200m across our key growth territories of Canada, Australia and continental Europe and are currently at advanced stages on contracts valued at in excess of £30m," the company said.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) is anticipated to be in the range of £4.5m to £5.0m, an increase of at least 150% on the prior year's £1.8m.

Total net debt is expected to rise to £15m-£16m from £6.7m, reflecting peak working capital requirements of Hydro Quebec and the acquisition of additional capital plant and equipment in Canada.

"A strong order book gives the Board confidence for the future and in particular its expectations for the financial year ending 30 September 2013, which remain unchanged," the firm added.

"The group has a strong pipeline of work, and sees compelling opportunities for growth in both domestic and overseas markets where it can build on the foundations of strong customer relationships."

Shares rose 5.65% to 16.38p at 08:30 Friday.

RD