Chief Executive, Lee McCarren

Forrest, the Northern social housing regeneration specialist, has reported continued turnover and profit growth in it's full year trading update.

The business, which provides support services to social housing providers in the North of England, said that organic growth from new and existing framework agreements, in addition to successful new service lines, had contributed to a 30 per cent growth in sales to £67 million.

Profits (recurring EBITDA*) also rose, by 16 per cent to £7 million (2010: £6m, 2009 £5m), despite a significant investment in the launch of a new  environmental services division, new IT infrastructure for its operational teams to improve service delivery and efficiency, and new regional service centre in Bolton.

Forrest, which is backed by private equity firm LDC, says that its forward order book for the remainder of its new financial year is the strongest in its history with more than 90% of its forecasted income confirmed.

Its environmental services division, Forrest Green, is continuing to experience strong demand in the expanding market for carbon abatement services with the Government’s multi-billion pound Green Deal pledge – aimed at improving the energy efficiency of domestic residences – and growing appetite for solar power among affordable housing providers looking to tackle fuel poverty, expected to provide further growth.

The business says that within its core offering of new build, responsive and reactive maintenance to social housing providers, changes to the rules which govern how local authorities use housing funds – effectively encouraging all surplus cash to be re-invested in housing - come into force this April and are likely to further ignite demand for its core services.

Lee McCarren, Chief Executive Officer, said: “Our three point focus on broadening the scope of our existing long-term framework agreements through complementary new service lines, expanding our geographical footprint across the North and on establishing new client partnerships has helped us to achieve a tenth consecutive year of outstanding growth.

 “We’ve maintained significant investment into our capability, capacity and people against a difficult economic backdrop and this is made us ideally placed to help meet the emerging needs of our clients alongside the delivery of essential services, helping us to continue on a solid path for future growth.”

Robert Morgan, Chairman of Forrest, added: “Forrest’s sustainable and integrated services model has once again seen it maintain impressive growth and profitability. Strong business management and sound financial control together with a commitment to quality delivery has been the key to its success.

“Moving forwards, its balance sheet remains strong providing it with the fire power needed to sustain investment for continual growth and to remain responsive to shifting market dynamics.”