IT consultancy and systems integrator Morse's
turnaround plan is slowly paying off as its 2009 accounts
returned
to the black.
Despite a near 10% fall in sales to £211.9m for the 12 months
ended 30 June 2009, Morse made an operating profit of £200k profit
compared to £4.7m loss
a year earlier. Gross profits fell 15.4% to £44m.
Charges for exceptional items were £8.3m for the year compared
to £13.4m in fiscal 2008. A £1.4m profit from continuing operations
was overshadowed by a £13.5m loss from discontinued operations,
taking the yearly loss to £12.1m.
"The year under review has seen significant improvements in
Morse as a business and a strengthening of the senior management
team," said chief executive Mike Phillips, acknowledging the
appointment of group finance director Guy Millward.
It has been a year of change for Morse, having entered into a
cost reduction programme, parted company with long-term board
director
Duncan McIntyre, restructured the business, and
broken up its Investment Management Consultancy (IMC) arm.
The UK Infrastructure Services and Technology business saw sales
fall to £114.2m from £131.4m, while the unit remained largely flat
on last year in Europe. The Business Applications division saw
sales drop to £40.3m from £46.1m.
"The revised operational structure makes the products and
services we offer clear to our clients, suppliers, staff and
shareholders. All our businesses have made significant progress in
reducing their cost bases," Phillips said.
Financial changes
Morse has confirmed that it is to sell off the operations in
France - the last part of its IMC arm - to the country management
team, subject to shareholder approval.
The sale of shareholding in France for £131k marks yet another
step in reshaping the organisation.
The firm was recently involved in
acquisition talks with several interested parties, but revealed
last month those discussions had been terminated.
Cost control
However, the private equity owner Gartmore is understood to be
keen on a sale, with the market expected to be tough in the
calendar year ahead for all in the channel.
"We expect the market for IT services and technology to remain
difficult and we will have to continue to be vigilant on costs
while keeping the businesses focused on their propositions," said
Phillips.
A version of this story originally appeared on
MicroScope.