Steam-cleaning specialist Proventec has announced what could prove to be both a highly lucrative tender and a life-saving tie-up with the NHS. Its cleaning arm Osprey has clinched a 14-month tender by the NHS Purchase and Supply Agency for sole provision of its unique steam cleaning equipment with a one-year extension option.

Chief executive David Chestnutt said the tender award signals NHS Trust recognition of the benefits of the group’s hospital equipment cleaning technology, which can help to combat deadly ‘superbugs’ such as MRSA and Clostridium difficile. ‘While the tender is no guarantee of sales, we are in the shop window of the NHS’, he remarked, insisting strong demand seen for the equipment is already converting into orders. The tender should also give the group greater clout when entering new markets, such as food.

Whereas traditional methods of deep-cleaning hospitals involved emptying the wards to let staff carry out comprehensive decontamination, Proventec’s steam cleaning machines can rid entire areas of micro-organisms without the need to remove patients or compromise safety. Prospects within the group’s hygienic solutions division were augmented by last June’s £5.5m acquisition of a controlling stake in Contico, a maker and distributor of cleaning products for the UK market, which also exports to Europe and the Middle and Far East and is thought to be performing well.

The other side to the Proventec story is its coatings division, which provides non-toxic, phosphorous-based coatings and chemicals for wood-based products, wool, cotton and plastics.

For the year to March 2008 Proventec, which delighted with a 218% profits surge to £390,000, admittedly from a low base at the interim stage, is forecast to raise profits to £1.84m (£1.3m), on a dramatic sales jump to £14.13m (£4.96m). The shares have plenty of speculative appeal.

Growth Company Investor is the UK’s leading authority on small-cap and AIM companies. You can gain immediate access to all the recent share recommendations with no obligation, with a free 30-day trial. Click here to join today.

Proventec	AIM	£12.78m	105.00p	0.00p
Click here for interactive charting
Other company articles:
Delving into the depths of AIM			14/04/2008
Proventec			22/01/2008
Catalysts pioneer chases deals			13/12/2006
Proventec			13/07/2006
Woodcock’s motor spinout			05/12/2005