Minerva Equity Limited - 31 March 2019 Final 19.08.2019 - Flipbook - Page 4
Minerva Equity Limited (formerly DMWSL 881 Limited)
Chief Executive’s review
Introduction
I am pleased to present the first report for Minerva Equity Limited (formerly DMWSL 881 Limited),
the ultimate holding company of the M Group Services Limited Group (“M Group Services”), a
leading services group of companies which provides repair and maintenance, refurbishment,
enhancement and data services to blue-chip clients in the essential infrastructure sectors in the UK.
The Group is organised to report in divisions that reflect the business segments in which it operates
which are Utilities, Telecoms, Transport and Data.
The ultimate holding company of Minerva Equity Limited (formerly DMWSL 881 Limited) is majority
owned by PAI Partners, a leading pan-European private equity firm with a strong track record of
investment in UK and Europe. Its backing provides the financial strength and expertise to allow the
Group to continue to grow both organically and through further strategic acquisitions that will support
us in delivering services to our clients and achieve our vision to be the leading service provider to
essential infrastructure in the UK and Ireland.
Strategic Development
The company was formed on 27 March 2018 and acts as the holding company of Minerva Holdco
Limited and its subsidiaries which it acquired on 30 July 2018.
During the period the Group’s businesses have operated well and in line with the board’s
expectations.
The strategy of seeking accretive bolt-on acquisitions to augment existing organic opportunities has
continued during the period, with two further strategic acquisitions made, enabling us to continue to
broaden the markets in which we operate, and diversify our service offering. Industrial Water Jetting
Systems Group Limited (“IWJS”) and Avonline Network Services Holdings Limited (“Avonline
Networks”) were acquired in March 2019.
IWJS is a leading provider of wastewater network services to the water, transport and environmental
sectors. The acquisition provides us with wastewater network services expertise which we can now
offer to clients across the Group.
Avonline Networks is a specialist provider of telecom network build and installation services on
behalf of network providers, alternative network operators and local authorities. This is an exciting
acquisition, further enhances the specialist expertise within our telecom division and brings a number
of new clients.
Subsequent to the year end the Group acquired two further strategic acquisitions, The Tomato Plant
Company Limited (“TPC”) and Antagrade Electrical Limited (“Antagrade”).
TPC is a specialist wastewater service provider to the aviation, utility and industrial sectors. It sits
alongside IWJS in the utilities division.
Antagrade is one of the UK’s leading providers of specialist railway electrification infrastructure
services and becomes part of the transport division.
Financial performance
The financial review on pages 9 to 12 summarises our financial performance.
Turnover for the period was £805.3 million and EBITDA (earnings before interest, tax, depreciation
and amortisation excluding exceptional items) was £46.1 million. On a proforma basis (i.e. assuming
the M Group Services, IWJS and Avonline Networks had been acquired for the full year ended 31
March 2019), turnover was £1,224.5 million and EBITDA was £70.8 million. Cash flow is a key
measure for the Group, and this has been in line with our expectations, reflecting a focus on working
capital management throughout the Group. We operate a lean overhead model which means our
structure is fit for purpose, especially in a competitive environment, and provides an ideal platform for
us to benefit from market opportunities.
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