Gofal Enterprises Limited (GEL), the trading subsidiary of leading Welsh mental health and wellbeing charity Gofal, has revealed it is on the acquisition trail as it looks to increase its position in the market.
GEL, which was set up in 2010 to develop and operate a portfolio of socially responsible businesses that invest surplus profits back into the charity, has announced plans to make up to five acquisitions in the next 18 months to aid its growth plans.
The business, which is set to grow 150% this financial year with a turnover of £750,000, is targeting £1.8m turnover for 2016/2017 which will be achieved through organic growth and its acquisition strategy.
GEL is eyeing up a number of acquisitions, which will range in size and services, to complement its existing business unit – PS Facilities Management.
The first social business set up by GEL in 2011, PS Facilities Management provides cleaning, building and maintenance services to organisations across south Wales, including Flexicare Medical Services, Celtic Horizons, Spindogs, Valleys 2 Coast, Llamau and Broomfield and Alexander.
Matthew Cole, Director of business development at Gofal, said:
“Faced with public sector funding cuts, we have had to think differently and creatively about the way we generate income for Gofal. Growth is paramount and we have to be innovative about how we achieve that growth
“While charity trading subsidiaries aren’t new, we believe our growth by acquisition strategy is particularly pioneering for the sector here in Wales.
“PS Facilities Management is performing really well as businesses are seeing the benefit of demonstrating their contribution to corporate social responsibility through purchasing services from a Welsh social business. We’re not looking to take our foot off the burner with this business unit which will continue to grow organically across our clean, maintain and build offering.
“However, we believe that in order to generate real growth, we need to increase our position in the market through acquisitions.
“Discussions are already underway with a number of potential businesses that are ripe for acquisition and we hope to get at least one under our belts by the end of the year.
“Next year will be a significant one for us as we look to build our portfolio of complementary social businesses.”
Gofal is a leading Welsh mental health and wellbeing charity. It provides a wide range of services to people with mental health problems, supporting their independence, recovery, health and wellbeing. It also lobbies to improve mental health policy, practice and legislation, as well as campaigning to increase public understanding of mental health and wellbeing.