MacLellan Group announced a sharp rise in pre-tax profits to £1.8m for the 15 months to the end of December 2000. This compares with £0.4m for the year to 26 September 1999. Turnover rose to £101.4m and operating profits were £2.2m.

The company was created when Haden MacLellan Holdings sold its Industrial Services Division to AIM listed Jordec Group last year (see News story). The ISD businesses were integrated and renamed to create MacLellan Group plc. The acquisitions of MacLellan International and its smaller sister companies, MacLellan Engineering Services plc (now renamed Jordan Site Management Services Limited) and MacLellan Internacional Limitada, were formally completed on 20 April 2000 for a consideration of £14.3m.

The Group announced earlier this year that the Engineering Services Division was no longer core to future development and has made a £4m provision, reducing attributable net assets to a level which the Board considers could be realised.

The Integrated Services Division made an operating profit of £1.9m on turnover of £58m, giving a margin of 3.3% Long term contracts secured during the year include ERF (see News story), Lotus, West Quay Shopping Centre and the Inland Revenue. Last month MacLellan announced that it had signed a £100 m, seven year contract with Mapeley Limited to act as its chosen service provider for three regions within the STEPS contract (see News story).

The Group's strategy is to expand its presence in the outsourced business services market and to continue to develop the Integrated Services Division, both through organic growth and acquisition.

Chairman ALR Morton says the Integrated Services Division will enjoy further significant growth in 2001: "In addition to contracts already secured, this Division has a growing pipeline of potential orders which should ensure continued future growth. The Board recognises that the start up phase of large contracts involves a number of considerable short term challenges at operational level but we are confident about our future prospects and look forward to continuing our mission to build the Group into a major supplier of outsourced business services."

www.maclellan-group.plc.uk

Richard Byatt