Grass Roots Group record results
Another Year of Record Results for The Grass Roots Group PLC
The Grass Roots Group PLC has recorded another year of financial success. The financial results of the group show record results with significant growth in turnover, gross profit, operating profit and profit before tax.
Turnover increased by 29.0% to £144.5 million. Gross profit rose by 38.2% to £31.5 million and there was also improvement in the gross profit margin at 21.8%, up from 20.3% in the previous year. The increase in operating profit was 21.4%, up to £4.4 million, resulting in a profit before tax of £5.5 million, an increase of 26.8%. The group’s balance sheet shows a 20.6% increase in net assets to £15.8 million and a 48.9% increase in cash to £34.5 million.
Commenting on the results, David Evans, Chairman & Founder of the group, said “This has been a busy year for us all with some important events adding to the ongoing success of the “key stone” businesses in the Grass Roots family. During this last fiscal, Grass Roots has added weight and width to its global ambitions. There are now Grass Roots companies in Brazil, Mexico, Venezuela and the USA. To this has been added the important acquisition of the Maritz businesses in the UK and Europe. These new family members have all prospered under our ownership and guidance”.
On the contributions of BitTime in the Americas and the Maritz European businesses, Evans commented, “All the businesses added have started to make their mark and are benefiting from the financial strength of the group. Our aim is to provide high quality services around the globe, based on the strength of businesses we are parent to, in all that might mean”.
Evans added, “Our core UK businesses have had yet another outstanding year enabling our expansion to continue whilst the home fires in the UK burn so brightly”. Evans singled out Rik Burrage, Managing Director of Grass Roots UK and Stephen Humphreys, Managing Director of Projectlink, for particular praise. “These businesses continue to illustrate the value of great leaders with freedom to act.”
“The acquisition of the Maritz European incentive and events business in the UK, Germany, France and Spain, was viewed by many with scepticism and some with genuine concern” says Evans. “It has been a delight to see the positive reaction to our ownership of these operations and to report the amazing turnaround achieved by the individual business leaders and their teams”.
“We have been adding additional businesses to our group based on services and geography. BDR, a customer strategy and management agency, was added in June 2006. As part of our Tring operation this team is creating a whole new raft of services and ideas to give clients a wide-angle view of motivating customers”.
“I was happy to report to our Annual General Meeting that we have managed world expansion whilst increasing shareholder value. That expansion will continue to make global solutions real and not imaginary.”
