Companies: VTS   

Financial and insolvency services outfit Vantis has doubled annual profits on strong organic growth and a return to acquisitions.

The AIM-listed company made £12.8 million in the year to April before interest, tax, goodwill amortisation and exceptional items on sales up 83 per cent to £71.2 million. Earnings grew 78 per cent to 16.2p a share and a final dividend payout of 3.3p per share is proposed.

Chairman Paul Gourmand expresses 'delight' with the 14 per cent organic growth and a successful resumption of the company's acquisition strategy after ‘a period of consolidation’ during 2004-05, led by the £18.8 million takeover of rival Numerica. As personal and business insolvency levels mount, he argues the group’s core accountancy, outsourcing, compliance tax services and consultancy services should continue to develop.

‘From the sound foundation of our core practice we are well positioned for further strong growth, particularly in business recovery and taxation, where we are gaining an excellent reputation for our market leading expertise,’ he insists. ‘We will continue to strengthen the business by selecting suitable businesses and teams of individuals from a strong pipeline of opportunities.’

In February, as the shares continued their uphill trek at 237.5p, Growth Company Investor advised ‘the shares should not be sold’. Now they are 251.5p, down 1p on the day.

With analysts expecting profits to lift to £13.6 million this year and produce earnings of 19.4p a share, that advice still holds.

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