In the last financial year – ending March 2009 - Direct Heating Spares achieved sales of £10.5mill and profits before interest, tax, depreciation and amortization of £1.2mill.
BSS Group chief executive Gavin Slark said: 'We are delighted to secure the acquisition of DHS. It is a high quality business and significantly enhances our customer proposition in the substantial and growing parts market. It is anticipated that the acquisition will be earnings enhancing in the current financial year just starting.'
Cost cutting accelerated in downturn
In a trading update ahead of the release of its preliminary results on 27 May, BSS Group said it had accelerated cost cutting initiatives in the final quarter of the financial year meaning exceptional costs will be higher than expected.
A group statement said: “The board continues to anticipate that underlying earnings, prior to exceptional costs and amortisation of intangibles, will be in line with last year.”
The group said its financial position continued to be strong with expected net debt at year end of £86mill compared to £104mill the previous year.