UPDATE 2-Connaught bullish on FY, to buy maintenance firm

Wed Jul 15, 2009 12:36pm BST
 
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* Confident will meet FY profit targets

* To buy ground maintenance firm in all-share deal

* Says continuing to perform strongly in H2

(Adds company, analyst comment, shares, detail)

By Rhys Jones

LONDON, July 15 (Reuters) - British support services group Connaught (CNT.L) said it would meet its full-year profit target after it won larger than normal public sector contracts in the third-quarter, and said that it had agreed to buy maintenance firm Fountains.

"Public sector organisations are trying to drive costs out of their businesses and contracts are getting larger and more integrated and we're benefiting from that. We're happy we will meet the consensus forecast for the year," Chief Executive Mark Davies told Reuters in an interview on Wednesday.

"There's also plenty of scope for us to grow revenues further as larger more integrated contracts are awarded at the expense of smaller local players, especially in social housing."

The group is expected to report a pretax profit of 42 million pounds ($68.83 million) for the year to the end of August, according to a Reuters Estimates poll of eight analysts.  Continued...

 

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