THE chief executive of Exova has reaffirmed the materials testing firm's appetite for acquisitions as it looks to maintain growth.
In a trading update Ian El-Mokadem said: "We continue to see opportunities to complement organic growth by extending the global reach of our business through new acquisitions and outsourcing agreements."
Edinburgh-based Exova noted the benefits of the acquisitions it has completed in recent months. The company increased revenues by 4.9 per cent in the 10 months to 31 October thanks to acquisitions.
Exova bought businesses in the UK, Norway and India during the period, in what directors described as bolt-on deals.
The company sold a small routine geological core testing and analysis business in Canada in November. Exova achieved 3.8 per cent underlying organic growth in the 10 months, in line with expectations. The company expects full-year underlying organic revenue growth at constant currency to be broadly in line with the year to date
Exova said its European oil and gas and industrials business continued to see a strong requirement for technically demanding services offset by some softness in more routine testing. Its services include helping firms check the metal used in the pipelines laid on the seabed in areas like the North Sea.
Exova's European health sciences business continued to report good underlying revenue growth. The company said aerospace demand had picked up in recent months.
The Americas oil and gas and health sciences divisions recorded strong growth offset by weaker demand from the transportation and the aerospace sectors.
Growth moderated as anticipated in the Middle East cluster after a particularly strong first half of the year but it has enjoyed benefits as a result of investing in fire testing in Australia.
Adjusting for one-offs and currency movements, revenues increased by four per cent in the first 10 months.
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