2e2, a leading UK-based ICT services provider, is today delighted to report its financial results for the year ended 31 December 2010.
Financial & Operational Highlights:
• Revenues of £327m (2009: £200m) and EBITDA of £37.9m (2009: £30.0m);
• Strong organic revenue growth; up 9% on a like-for-like basis;
• Strong cash generation; cash inflow from operations more than 90% of EBITDA after exceptional items and restructuring costs;
• 33% increase in operating profits;
• Acquisition and integration of Morse plc;
• Significant reduction in bank leverage as a result of the acquisition of Morse and growth in earnings.
Terry Burt, Chief Executive Officer at 2e2, commented: “We have produced a strong set of results and seen a return to growth. During the year we have enjoyed some excellent customer wins as our portfolio of enhanced propositions was rolled out to the market. The acquisition of Morse plc in June 2010 marked a major milestone in our development. It has increased the size of the organisation to over 2,200 employees and has enabled us to broaden our offering to an expanded portfolio of customers. The Morse acquisition was funded by Hutton Collins, our new equity partner who sits alongside Duke Street as our principal equity investors. As a result of the extra profits contributed by Morse we have reduced the level of our bank borrowings. We expect this to reduce further once we have had the benefit of a full year of Morse earnings and the cost synergies that have accrued from the integration.”
Outgoing 2e2 Chairman, Eric Priestley, commented: “In a year that presented us with improved but subdued trading conditions, I am pleased to report that we once again produced a good set of results. There were many good customer wins including some substantial transformational projects as an increasing number of customers recognised 2e2’s breadth of technical capabilities and depth of business knowledge. Furthermore, our acquisition of Morse plc brought valuable skills to 2e2 and firmly established us as a leading services provider within the financial services, TMT and local government markets, amongst others. The core business delivered strong organic growth during 2010, and enhanced by our new initiatives we expect 2011 to represent a year of further economic growth.”