BAQUS, the AIM-quoted quantity surveying company, is planning further expansion despite fears of a slowdown in public sector contracts.

Chief executive Clive Sayer declared himself “satisfied, considering the climate we are operating in” with annual results to June 30 showing a 2% uplift in sales of £7.85m but a fall in pre-tax profits from £1m to £740,000.

However, this was close to market expectations, and Baqus boasts £1.158m in cash reserves.

Formed by the amalgamation of three offices in 2007, including Fletcher McNeil’s Roscoe Street operation, Baqus now operates out of 12 UK offices, employing 150 staff. Earlier this year, it added the Nigel Rose Group and Mr Sayer said more consolidatory acquisitions could follow.

“This is quite a good time to do acquisitions,” he said.

“Three or four years ago, people were running round trying to keep clients happy and maybe too busy to think about their futures. But the recession is a wake-up call and people are thinking about exit strategies.

“We’re saying, why not come and talk to us and have a coffee – and we’re drinking a lot of coffee.”

He said the Liverpool office, which is currently working on a £7.5m 141-room Travelodge Hotel development for The Strand, would be at the heart of any expansion farther north.

Liverpool’s private sector focus could also bode well after a shift in public sector work which Mr Sayer believes could worsen after the General Election.

“About a year ago, the public sector was doing well, but we have noticed that some of the biggest public sector jobs have come to a grinding halt, often not officially.

“But the private sector shows signs of coming back one way or another, and the trick will be to have lots of eggs in different baskets.”