Despite a construction crisis making its way through national headlines, there are no such crises in the industrial sector as evidenced by supplies company Coventry Group (ASX: CYG) which is going from strength-to-strength with rising sales and their eyes set on acquisition targets.

Confirming their unaudited results for the full year, Coventry Group expects FY22 sales to be $322.8 million which represented an 11.6% increase on the previous year. The rise in sales are attributed to a diversification into new markets, as well as earnings accretive acquisitions where previous management are fully retained to drive the businesses forward with minimal disruption.

“The Group delivered pleasing full year sales growth despite significant global and COVID-19 related disruption,” said Coventry Group Managing Director, Robert Bulluss.

“FY21 acquisitions (HIS Hose and Fluid Power Services) are performing to expectations and recent acquisitions (GHL and Fraser Coast Bolts) have performed well in the first three months post-acquisition. We continue to have a strong pipeline of acquisition opportunities.”

In their previous FY22 guidance released in June, Coventry Group expected revenue to fall in the range of $315m – $325m while EBITDA would be around $15m – $16m.

Net profit before tax is expected to be around $10.5m which would represent a 13.6% increase on the previous year.

Since releasing guidance in June, directors of Coventry Group have backed the Company’s growth ambitions in a hugely fragmented sector where acquisitions will play a valuable role in growing Coventry further.

This was reflected in three directors purchasing CYG shares on-market with Alex White acquiring $121k worth, Neil Cathie $41k and Andrew Nisbet $20k.

White in particular continues to be a strong backer of Coventry with his recent on-market purchases added to the $150k he acquired on-market in March 2022 after the Company reported their half year results.

While the Company expects that earnings would have been higher had COVID not impacted operations, they have been undergoing geographic expansion at a time when acquired businesses can benefit from Coventry’s centralised support. This included the acquisition of Goudie Holdings Limited and NZ Planks Limited (GHL) for NZD $8.5m and Fraser Coast Bolts and Industrial Supplies (FCB) for AUD $2.8m in March 2022.

Both acquisitions were funded through Coventry’s debt facility and are expected to deliver EBITDA of $1.9m and $0.6m respectively on an annualised basis.

Coventry Group’s portfolio of industrial supplies businesses sell a range of fastening systems, industrial products and hydraulics, lubrication, fire suppression and refuelling systems, cabinet hardware systems and other products.