Key Technologies on acquisition hunt
Key Technologies, the Cradley Heath-headquartered specialist engineering group, is looking to make “further earnings enhancing acquisitions”, following a 31 per cent increase in trading profit of its core defence division. The company is one of three listed on the Midlands stock exchange, Investbx.
Key Technologies made a major acquisition in June 2010, but said the impact of the purchase on the results was “immaterial”.
For the year ended 30 June 2010, the company’s sales revenues were £20.9m, a slight increase on its 2009 result of £20.7m.
Underlying profit before taxation of £2.7m compared with £2.9m in the previous year. The company said that the reduction resulted “from a fall away of profit in its non-core switchgear business”.
The company’s defence division acquired Lincoln-based Primetake in June this year, for an initial consideration of £10.5m. The company said that the purchase of Primetake, a supplier of special purpose ammunition and equipment, has lead to a major expansion into the robust homeland security markets.
David Grove, non-executive chairman, said: “The group is developing in line with our strategic plans. The current year has started in line with our expectations and our order book in the defence and homeland security division, including Primetake, is building up healthily.
"As a result of the anticipated timing of contracts, the revenues for the current year will be more biased towards the second half of the year than has been the case historically.
“We now have a robust and well financed platform from which to make further earnings enhancing acquisitions.”
Key Technologies now has operations in Gosport in Hampshire, Wimborne in Dorset, Lincoln and Cradley Heath. The company employs approximately 300 people, 100 of whom are based in the West Midlands.
