Utilities and infrastructure firm OCU Group has boosted its revenue by more than £275m, thanks to a series of acquisitions that hit its bottom line.
The company, headquartered in Stockport, Greater Manchester, bought civils contractor RJ McLeod in June 2024, a move described in its newly published annual report as “transformational”.
The deal “significantly strengthens our presence in the Scottish market and bolsters our capabilities in energy transition markets in the UK”, the company said.
The report shows overall revenue hit £886.5m in the year ended 30 April 2025, compared with £610.6m in the previous 12 months.
Its pre-tax loss doubled from £30.9m to £63.6m, delivering a margin of -7.2 per cent, although the group still described its performance as “profitable”.
The group generated a 3.9 per cent return on capital employed.
If adjusted for the costs of mergers and acquisitions, restructuring and systems integration, the firm said its operating profit stood at £98.9m, up from £58.4m.
During the year it also acquired water treatment and management company Purestream, as well as McCormack Drilling, which specialises in trenchless construction methods.
OCU Group now claims to be “the clear market leader in horizontal drilling in the UK; a critical service which we offer clients across multiple sectors”.
The acquisitions saw it add £7.8m for remedial provisions for construction contracts, taking total provisions for liabilities to £13.4m, up from £1.8m.
Net assets stood at £66m on 30 April 2025, down from £136.8m a year earlier, although the group almost trebled its cash at hand from £28.8m to £77.2m.
No dividends were paid out.
In July 2025, after the period covered by the annual report, the group acquired a majority stake in All Energy Contracting, based in Brisbane, Australia. The company specialises in cable installation for solar projects and also operates in New Zealand. OCU nevertheless referred to the deal in the new document and said that it enables the group to grow internationally.
OCU Group chief executive Michael Hughes said the company had “delivered consistently strong strategic and operational progress this year, underpinned by three acquisitions, organic contract wins, and continued investment in technology and talent”.
He added: “Our diversified position across essential UK infrastructure markets provides a robust platform for sustained, long-term value for clients and stakeholders.”
The company said it sees future opportunities for continuous growth and innovation in the power and water sectors.
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Ian Weinfass