Morse posts Q1 profit

Integrator posts Q1 profit but warns of more challenges ahead in the economy

Morse shares picked up today after the integrator posted a profit for its first quarter results 2009 in its interim management statement.

The integrator, which is split into four independent units – Infrastructure Services and Technology UK, Infrastructure Services and Technology Spain, Infrastructure Services and Technology Ireland, and Business Application Services – saw UK turnover drop to £24.7m for the quarter compared with £27.9m in the same quarter 2008.

But operating profit increased to £1.7m compared with £0.7m in Q1 2008.

For the group, turnover hit £47.1m in Q1 2009, compared with £55.8m last year, but group profit stood at £1.9m compared with a loss of £500,000 in 2008.

In addition, Morse revealed a cash balance of £5.1m at the end of September, compared with a net debt of £8.9m in 2008.

In a statement it said: “While we have seen improvement in the group’s results in the first quarter of the year, the trading environment for all our businesses continues to be very challenging.

“With our simplified operating structure and reduced cost base, the businesses have delivered improvements in profitability and cash generation and are clearly focused on continuing to do so.”