Shadow chancellor impressed by lean Enta
Ed Balls struck by distie's business and eye-catching Taiwanese hallmarks, as CEO talks us through financial restructure
Enta was visited by Ed Balls recently, with the shadow chancellor reportedly impressed by the business and the distinctive Taiwanese features of its headquarters.
The distribution group welcomed Balls and local MP David Wright to its HQ at Stafford Park in Telford. Chief executive Jason Tsai told CRN that the former secretary of state for children, schools, and families was struck by his art collection, which adorn the walls of the company he founded 24 years ago.
Other far-eastern features to have captured the imagination of the two Labour MPs included a carp pond and the ornate pagoda-style architecture of the buildings. The political duo also found time to join Tsai in creating a Taiwanese puppet show (pictured above).
"Many American or European companies are all very similar, with the same traditional industrial buildings, but we are very unique," added Tsai. "Mr Balls said he had never seen a company like ours in Telford!"
Reporting restructure
Tsai also talked CRN through a recent reworking of IT distribution arm Entatech's financial structure, with two dormant companies being excised from its operations. Entatech Distribution Ltd - a three-year-old intermediate holding company that sat between ultimate parent Enta UK Ltd and the business' trading arms - is to be struck off.
Concurrently, Enta Technologies Ltd - which has long been the principal trading entity - was made dormant several months ago, with the business operations and finances hived over to Entatech UK Ltd, which previously served as a holding company.
The dormant Enta Technologies Ltd business was sold on 10 January to an individual - Shu Hua Chang - who has renamed it Changtel Solutions and, according to Tsai, intends to create a mobility business. No stock, other physical assets or staff were part of the deal.
CRN had been contacted by some onlookers in the channel confused and concerned by the name change, but Tsai stressed that Changtel Solutions Ltd is no longer anything to do with the Enta group of companies. The Entatech structure will consist of trading entity Entatech UK Ltd, which will be held by parent Enta UK Ltd - reducing the previous structure of four companies down to two.
"The restructuring was a necessary process to make the ownership simpler," said Tsai.
For the 16-month period to the end of February 2013, Enta UK Ltd banked net profit of £2.1m on sales of £162.5m. Total shareholders' funds at year-end were a little shy of £6m, compared with £3.9m at the end of FY11.