Enterprise to slash costs after £135m pre-tax loss

Aaron Morby 11 years ago
Share

Utility and outsourcing contractor Enterprise is to start a group-wide cost-cutting programme after booking a £135m pre-tax loss after exceptionals and write downs.

The latest results are the first to be released since Alan Peterson joined as chairman, after Enterprise parted company with chief executive Neil Kirby earlier this year.


Peterson starts Enterprise efficiency drive

Peterson said he would embark on a broad restructuring programme this year, which would bring big benefits in 2012.

“We have taken a number of steps during the year to ensure we best position Enterprise to address our future markets. We recognise the importance of cementing our position as best value, lowest cost operator.”

During 2010, Enterprise made an operating profit of £61m, down from £77m last time.

But a series of exceptional charges and write downs saw a huge booked pre-tax loss.

These included a £73m non-cash goodwill write down relating to previous acquisitions, which were taken as a result of expected falls in public sector work.

There was also an exceptional charge of £38m covering legacy contract items on old contracts and a further £4.8m to cover the first part of the restructuring.

“This latter charge represents the first stage of a broader restructuring programme with further costs to be incurred during 2011 as the group targets improved levels of efficiency in its operation”, said chairman Peterson.

“The full year benefit of these restructuring measures will be seen in 2012.”

He added that Enterprise maintained strong net cash flow during the year of £49m. This helped cash rise by £12m to £77m, despite spending £9m on three acquisitions.

But tightening market conditions and rising bid costs saw profit margins drop to 5.6% from 7.3% in 2009, while group turnover remained in line with last year at £1.1bn.

Peterson, who comes with a strong pedigree from HSS and Jewson, said: “Recent changes in the way the group is managed and in its cost base will improve operating efficiency throughout Enterprise.

“We have also established a project management office, to drive a number of key change programmes which will transform operational performance and reduce costs.”

He added: “The drive for greater efficiency will be relentless and will extend beyond the current identified programmes.”

Latest news

Fast-track 138-project growth plan – full list

Chancellor banks on road projects to lead growth plan recover
2 days ago

Loathed IR35 reforms scrapped by Chancellor

Contractors will no longer have to determine tax status of freelance workers
2 days ago

Giant TBM cutterhead takes road trip to second drive

Balfour Beatty Vinci to drag remaining TBM back through tunnel for second bore
2 days ago

Kwarteng backs construction to lead “new era for Britain”

Planning rules to be ripped-up to speed infrastructure work as 38 new Investment Zones created
3 days ago

Green light for next two Manchester NOMA jobs

Work to start early next year on first of two major office buildings
2 days ago

Bouygues struggles to raise profitability

Loss-making contracts dent pre-tax profit at £835,000 from revenue up at £484m
2 days ago

Architect helps staff with £1,000 cost of living cash

P+HS Architects to make one-off payments this autumn
2 days ago

Sisk wins £69m rerouting of landslip-prone A59

Site clearance to start next month at Kex Gill in Yorkshire
3 days ago

Renewal race starts for £800m NEPO framework

Nearly 20 firms face fight to renew places on north east construction panel
2 days ago

Avonside supply chain left holding £17m in unpaid bills

Former bosses revealed as buyers of branches from administrators
3 days ago

Hexagonal tower plan for Manchester city centre site

Site will feature a 45 storey resi tower and 350,000 sq ft stepped office block
3 days ago

Keltbray staff get £1,000 cost of living payment

Contractor also plans annual pay rise of 5% for majority of employees
3 days ago

Eric Wright rebounds as profit nearly trebles

Second year of revenue fall brings profit reward
3 days ago

RSK buys Welsh contractor Spencer Group

RSK revenue forecast to hit £800m after busy year of acquisitions
3 days ago

National Highways director to lead Balfour civils business

Peter Mumford appointed Managing Director of UK Construction Regional Civils
4 days ago

Plan detailed for business energy price cap

Gas and electricity price cap comes into force from October
4 days ago

Wates wins £53m Grade II London office revamp

Edwardian bank building at 41 Lothbury will become HQ for legal firm Addleshaw Goddard
4 days ago

Woodmace went down owing suppliers £11m

Unsecured creditors left holding worthless invoices despite buyout
4 days ago

Galliford Try staff to get £750 cost of living payment

First major contractor follows big house builders with staff one-off payment for energy bills
5 days ago

Galliford Try checks cost pressures to lift margin to 2.4%

Contractor delivers growth in revenue, profitability and order book
4 days ago

HS2 wins High Court injunction to block protestors

Injunction blocks activists from trespass and intimidation but allows lawful protest
5 days ago

Police hand over probe into Costain site death to HSE

Investigation continues into death of slinger signaller at £150m Gatwick Airport train station site
4 days ago

Glencar wins £30m Barnsley industrial shed job

Earthmoving works are underway at 24-acre logistics site
5 days ago

Scottish house builder puts rental housing schemes on hold

PRS and affordable schemes on hold after Scottish Government’s temporary rent rise freeze
5 days ago

Soaring prices blamed for Woodhead going into liquidation

RSM Restructuring confirmed as liquidators of regional contractor
1 week ago

Council steps-in to save sites hit by Woodhead collapse

Bolsover District Council to run jobs directly on £36m homes building programme
5 days ago

Henry Boot shines with near-record first half profit

Land disposals and project completions drive 68% uplift in profits
5 days ago

Renewal race for £2.5bn housing upgrade framework

Procure Plus to renew line-up of trade contractors for social housing upgrades
5 days ago

Crane sale raises £4.6m after M&M collapse

Euro Auctions sells 22 machines after hirer goes into liquidation
5 days ago

£26m Surrey road and bridge job out to tender

Railway level crossing at Ash Station near Guildford to be replaced with bridge
5 days ago

Contractor services