Morse sees profit plunge

But pan-European integrator still turns a profit for the nine months ended March 2009

Morse is banking on converting all the leads in its sales pipeline to remain profitable and will continue to "drive operational efficiencies", according to its latest interim management statement.

For the nine months ended 31 March 2009, the group posted a operating profit of £2.8m compared to a profit of £7.8m in the same period a year ago.

But when breaking down the figures, despite the challenges of the economy, Morse's UK business posted an operating profit of £4.4m for the period, compared to £3.1m in the same period the previous year – despite turnover dropping to £83.9m from £96.4m in 2008.

The integrator’s statement included unaudited management accounts information for the nine months ended 31 March 2009, and the continuing operations of the group which is made up of four separate business units: Infrastructure Services & Technology (IS&T) UK; IS&T Spain; IS&T Ireland; and Business Application Services.

Its European business (Spain and Ireland) held its own, revealing a £41.7m turnover in the nine month period, compared to £41.8m in the same period a year ago.

Earlier this year Morse sold off another part of the business – the UK and Jersey Investment Management Consultancy, and the business has been classified as discontinued.

In a statement, the firm said: "The trading environment for all our business units continues to be very challenging, compounded by the unprecedented global economic conditions. This is evidenced by longer sales cycles and deferral of contractual decisions.

"The operating profit outturn in the current financial year for our continuing operations is dependent on the conversion of our sales pipeline. In our IS&T businesses these decisions will be weighted towards the end of the financial year.

"Management remains focused on driving operational efficiencies and executing on the defined strategy which we believe will over time deliver benefits to shareholders."