Gavin Slark: BSS is in a strong financial position.
BSS buys Direct Heating Spares
Published: 20 April, 2009
LEICESTER: The BSS Group, specialists in the marketing and distribution of heating, plumbing, process, pipeline and mechanical services equipment, acquired Direct Heating Spares from the Gough family shareholders for £5.7m (net).
BSS Group chief executive Gavin Slark said: "DHS is a high quality business and enhances our customer proposition in the substantial and growing parts market. It is expected that the acquisition will be earnings enhancing in the current financial year."
DHS, which is headquartered in Leyland, Lancashire, is a wholesaler and distributor of spare parts to the heating industry. For the 12 months ended 31 March 2009 its revenue was £10.5m and earnings before interest, taxes, depreciation and amortisation (EBITDA), £1.2m.
BSS has entered a close period prior to the announcement of its preliminary results on 27 May. Cost savings initiatives have been accelerated during the final quarter of the financial year. As a result, exceptional costs in the 2008-09 financial year will be higher.
The BSS board anticipates that underlying earnings, prior to exceptional costs and amortisation of intangibles, will be in line with last year.
"The Group's financial position remains strong, with expected net debt at year end 31 March 2009 of £86m (31 March 2008: £104m)," said Mr Slark.