黑洞社区

Enterprise financial director David Arnold has insisted the support services group has turned the corner after a 鈥渢ough year鈥�, despite posting widening losses during 2010.

The group鈥檚 accounts for the year ending December 2010 revealed a pre-tax loss of 拢135.2m after exceptional charges and write downs.

These included an exceptional charge of 拢42.7m, partly attributable to restructuring costs of 拢4.7m, but primarily due to provisions related to legacy contracts. There was also a 拢73m non-cash goodwill write down, the result of a downward revision of growth rates in public sector work.

Stripping out the exceptional items, group operating profit during the year came in at 拢61m, down from 拢77m for the same period last year, on the back of increased bid costs and tougher trading conditions.

Profit margins fell to 5.6% from 7.3% in 2009, while group turnover came in at 拢1.1bn, up slightly on the previous year.

Arnold said: 鈥淥ur capital structure is typical of a private equity business. It鈥檚 easy to look at the numbers [on the balance sheet] and see [losses], but we鈥檝e posted an operating profit of 拢61m when you strip out the one-off costs. Last year was a year of consolidation. The cash generation of this business remains strong and we have entered the new financial year in a robust position.鈥�

Enterprise parted company with chief executive Neil Kirby earlier this year and the group鈥檚 owner, private equity group 3i, installed Alan Peterson (left) as executive chairman to replace him.

Peterson, the former head of HSS and Jewson, is a renowned 鈥渃ompany doctor鈥� who has worked with 3i in the past. Arnold said Peterson had brought a 鈥渨ealth of knowledge鈥� to Enterprise and had been a 鈥減owerful catalyst鈥� for improving the business.

Shortly after Kirby鈥檚 departure 3i revealed it had taken a 拢201m hit on its investment in Enterprise, which it bought at the height of the credit fuelled buy out boom in 2007 in a deal in worth 拢490m.

This year the restructuring has led to 200 job cuts.

Arnold said: 鈥淚t鈥檚 been tough but there is a spring in the step of the business now, the business is in a good space.鈥�