OCU Group has reported a significant pre-tax loss despite a rise in revenue driven by recent acquisitions.
- The company experienced a 34% increase in turnover, reaching £610.6 million for the year ending April 2024.
- OCU Group’s financial challenges are linked to a series of strategic acquisitions and an increase in borrowed funds.
- The acquisition of several firms contributed to revenue growth but led to a financial loss compared to a profit the previous year.
- Future plans for the company include further acquisitions to align with strategic objectives.
The OCU Group, an infrastructure contractor, has reported a substantial pre-tax loss of £30.9 million, as revealed in its recent annual accounts. Despite this, the company also recorded a notable 34% increase in revenue, reaching £610.6 million for the fiscal year ending 30 April 2024. This increase in turnover can be attributed to both organic growth across multiple sectors, including utility work such as water, and a series of strategic acquisitions.
These acquisitions are central to understanding the financial dynamics at play. Throughout the 2023/24 financial year, OCU Group embarked on a robust acquisition strategy that saw the incorporation of five new companies. Among them were Insiris, now rebranded as OCU Digital, which specialises in workforce and automation software, and Modus, a London-based multiutility specialist. Other acquisitions included Northavon Group, a water engineering firm; Integrum Power Engineering; and Hornbill Engineering, an energy security firm. Although these acquisitions bolstered OCU’s revenue, they also contributed to the financial losses experienced this year.
OCU Group is owned by private equity fund Triton Partners, which purchased the company from Tim and Tom O’Connor in July 2022. The acquisition was partly financed through a £200 million term loan and a £150 million “committed acquisition facility.” Recent developments in April 2024 saw these facilities extended by £153 million and £31 million, respectively, underscoring the financial commitments involved in this growth strategy.
The firm’s Chief Financial Officer, David Snowball, highlighted the positive aspects despite the loss, noting that OCU continues to make substantial progress towards its strategic goals. According to him, the company’s efforts in the energy transition market have been particularly successful through a combination of organic growth and strategic acquisitions. Looking forward, OCU remains committed to pursuing further acquisitions that align with its strategic objectives.
OCU Group’s financial results underscore the complex interplay between aggressive growth strategies and financial outcomes.
