The Morse effect gave 2e2's top line a healthy boost but heavy interest payments continued to prevent the integrator from turning a net profit during a mixed 2011.
Sales for the year to the end of December were up 21.7 per cent year on year to almost £396m. Operating profit stood at a little more than £20m, compared with the £13.2m posted in 2010. Much, if not all, of last year's growth can be attributed to 2e2's 2010 acquisition of rival Morse.
Interest repayments of more than £20.8m completely wiped out last year's profit, while restructuring costs, tax and losses on discontinued operations dragged 2e2 to an annual net loss of £8.4m. However, this represents a narrowing of 2010's net loss of £9.1m. Net current assets grew from £13.9m to £20.9m over the course of the year.
In his chairman's statement Graham Love, who joined the Newbury-based outfit last year, highlighted the fact that his firm closed its biggest-ever deal during 2011, a £35m-plus contract with a health trust. He also pointed to the success of the integrator's working relationships with 2e2 and its Indian offshore partners.
"We will continue to develop our integrated offshore capabilities, working closely with our offshore partners, particularly in the Indian sub-continent," said Love. "Our first year of operating the O2 Unify partnership has been particularly rewarding, with some excellent wins and impressive results."
During 2011 2e2 verticalised its go-to-market proposition to demarcate and focus on key markets including financial services, telco, health, local government, and the wider commercial market. Chief executive Terry Burt (pictured) claimed the operational rejig is already bearing fruit.
"During the year our market sector-focused organisational model and propositions reached a new state of maturity, allowing us to demonstrate more clearly our knowledge and track record, and to establish ourselves further as a trusted partner in these markets," he said. "We enjoyed good wins and progress in each of these areas."
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