Acquisitive CRC boasts interim surge
Article Date: Aug 14 2002Mobile phone servicing and warranty specialist CRC Group is on the look out for 'value enhancing acquisitions' after reporting an 80 per cent first-half profits rise to £4.3 million, writes Robert Tyerman.
Earnings at Aim-listed CRC rose by 60 per cent in the six months to June – to 13.27p a share – on a 33 per cent sales increase to £58.2 million. The interim dividend was lifted by 66 per cent to 2.5p. This strong performance follows a year in which significant acquisitions helped the company to nearly treble pre-tax profits to £5.8 million, on sales up from £54 million to £98 million.
During the six-month period, CRC signed a 'Europartner' contract to provide Nordic telecoms giant Nokia with service support in Germany from its low-cost operating base in Poland.
Chairman Michael Peagram says CRC's IT-related services continue to grow. And he reports 'considerable success' in digital set-top box repair, where the company has won long-term contracts with Telewest, Broadband and Scientific-Atlanta.
Expressing confidence about the second half, Peagram says CRC is still looking for acquisition targets. He hopes these 'will enable it to extend its customer base, product range and IT systems'.
CRC shares, recommended previously on this website at 130p and 186p, rose 6.5p in early trading to a high of 258.5p. Analysts suggest partial profit-taking might be wise.
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