ENERGY efficiency company Eaga yesterday made its fourth acquisition in the past 12 months after buying central heating company AFR for up to £3m.

The latest acquisition for the Newcastle plc is being hailed as a stepping stone for further growth for the firm, which was recently named as a FTSE 250 company, and helps to increase its presence in the social housing sector.

AFR, based in Welwyn Garden City, Hertfordshire, has 65 staff and a number of servicing and maintenance contracts with local authorities, including Welwyn and Hatfield Borough Council.

Its presence in Hertfordshire and North London will add to Eaga's growing portfolio in the South, helped by its acquisition of Essex central heating company RG Francis in June, for an initial £9.6m.

Eaga - which is planning to treble its UK workforce to 10,000, and more than double turnover to £1bn within three years - also bought White Horse FM Group Limited for £37.2m, and JD Heating for £6m, last year.

Eaga chief executive John Clough said: "This latest acquisition is another clear demonstration of how we are building a sustainable and growing business, both organically and through a strategic buy and build approach

"AFR is an excellent business with a strong track record and good servicing, maintenance and repair contracts.

"We already work with some of the largest social housing providers in the Midlands, the North-East, Northern Ireland, London and Essex, and AFR extends this national footprint."