Exova says deals pipeline remains strong as sales rise

Exova chief executive Ian El-Mokadem
Exova chief executive Ian El-Mokadem
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Edinburgh-based materials testing specialist Exova today said it was making “very good progress” on further acquisitions as it reported an increase in revenues.

The group sealed a £22 million deal in May to buy certification and building products testing firm BM Trada, and told investors that the integration of the business has “gone well”.

In today’s trading update, Exova said overall revenues during the ten months to 31 October were 9.3 per cent higher than a year earlier on a constant currency basis, or up 7.5 per cent on actual rates.

Since the start of July, revenues in the Americas have improved amid “good progress” in the aerospace and transportation sectors, but in Europe the firm said the impact of low oil prices “has led to further contraction and price pressure in our oil and gas and industrials cluster”.

Chief executive Ian El-Mokadem said: “I am pleased with our overall performance for the year to date. We have seen good growth in most of our sectors and are making very good progress with acquisitions.”

Exova, which employs about 4,500 people around the world, is due to announce its 2015 full-year results on 2 March.

In August, the company reported a first-half profit of £10 million, compared with a £38.1m loss a year earlier, after overcoming a contraction in the oil and gas market.