White goods repair business Pacifica Group has bounced back to profit, in a year which saw it seal an £18m deal to sell one of its divisions.
The company, which was founded in 2003 by a small group of energy sector experts, has grown to become a leading provider of domestic appliance repairs and extended warranties, working with several big name brands. Pacifica carries out more than 350,000 domestic appliance repairs each year, completed by a team of around 250 engineers covering the UK.
Latest accounts for the year ended March 31 2023 show the previous year’s operating loss of £900,000 was converted to profit of £17.6m, while turnover rose 12% from £52m to £61.4m. Staff numbers also grew significantly, from 599 to 710 employees.
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Two months before the year end, the business – which works closely with brands such as Electrolux, Sony, Hisense, Vestel, Howdens (Lamona) and LG, along with retailers including Argos and Shop Direct – sold off one of its main trading subsidiaries, Pacifica Home Services Limited. The business disposed of 90% of the share capital in the business, through a management buyout by Viessmann Investment UK Holding Limited, with management acquiring the remaining 10%.
The sale generated a profit on disposal of £18.76m, and a breakdown within the accounts showed that turnover from Pacifica Home Services, shown as discontinued operations, rose from £24.2m to £30.5m, while operating profit rose from £332,651 to £20.15m. Turnover within continuing operations reached £30.8m, up from £27.7m, but operating losses widened from £1.17m to £2.5m.
Directors said that alongside its organic growth, Pacifica continued on its acquisition trail to boost its UK footprint and ability to deliver local services, making three acquisitions in the period with further strategic integrations planned, including the acquisition of Highland Appliances Limited, a white goods repair company based in Scotland.
Throughout the year, Pacifica has also expanded its presence in the UK major domestic applicance (MDA) market, and also strengthened its senior management team with the appointments of Vikki Weston as group HR director, Leanne Murray as customer operations director and Matthew Pallister as commercial director.
The group said it expects growth in revenue from continuing operations in the current financial year. It has also bolstered its commitment to community wellbeing, working with Fairshare to help alleviate food poverty and increase its support of local food banks across the UK.
Kevin Brown, CEO of Pacifica, added: “This has been a transformational year for Pacifica, which has delivered stellar financial results. Our financial strides, paired with our strategic engagements and delivery of market leading tech modules from our internal Pacifica Technology business, underline our relentless drive to redefine excellence in the MDA market.
“Our team continue to provide outstanding service, which is the foundation on which our achievements are built, together with the unwavering support of our private equity investors, Synova Capital, which has guided Pacifica’s success in the market. We’re not just growing, our trajectory also reflects our increased market share and unwavering commitment to our clients, partners, employees and the communities we serve.”
During the year, ordinary dividends of £13.5m were paid.
