ANALYSTS claim Brulines will bounce back from its profits crash on the back of a strong performance from its recent acquisitions.

In the last 15 months, the Stockton data monitoring specialist has bought four companies including three for its growing fuel solutions division.

Although low margins in these businesses contributed to a 25% fall in group profits in 2010-11, industry analyst Cenkos predicts an improved performance once the acquisitions start to deliver “meaningful profits”.

Brulines saw pre-tax profits fall from £4.03m to £3.02m in the year to March, but Cenkos forecasts a rise to £4.5m by March 2012.

Ian Berry, research analyst at Cenkos, said: “The fuel solutions division made a £0.4m trading loss but we estimate it will make a £0.7m contribution in the current year.

“The group retains a dominant market position in its core business with a high level of recurring revenue due to the duration of its contracts.”

He said Brulines had made “solid progress” in developing new growth areas for the business.

The company has strengthened its foothold in the vending and forecourt markets with a string of acquisitions - including three in three months last year.

The purchases of Energy Level Systems, Retail & Forecourt Solutions and LBI Installations helped push up group revenues to £24.3m in 2010-11.

Cenkos said that would rise to £25.5m by next year and £26.8m in 2012-13, particularly if Brulines could accelerate growth in its new businesses and take advantage of opportunities overseas.