Restructuring dents profits at Vertex
OUTSOURCING specialist Vertex continued to secure new contracts last year but restructuring costs dented profits.
The Liverpool-based business is one of the largest firms in the UK specialising in customer management outsourcing. The former United Utilities division handles websites, call centres and back office operations for local authorities, utilities and retailers.
It employs around 9,000 people with some 2,500 at offices in Manchester, Warrington, Bolton and Liverpool.
Turnover for the year was £354.8m compared with £364.3m in the 15 months to March 31, 2008. The business recorded an operating profit of £21.3m compared £21.8m the previous year.
But after taking into account restructuring costs, finance costs and other exceptional charges Vertex made a pre-tax loss of £31.2m, down from a £13m loss last time.
During the year the business, which counts Scottish Power, the National Trust and Westminsiter City Council among its clients, secured a 10-year contract with a US gas utility and a £40m call centre contract with a large retailer.
Speaking to TheBusinessDesk sales and marketing director Anna Campopiana stressed that the operating profit figure gave the most accurate picture of the company’s financial position.
She said: “It shows what a strong and viable business we are. This is a very strong, growing business with sound investors and we are a business with very strong growth opportunities.”
Vertex accrued £24m of exceptional charges, £22m of which were associated with redundancies and reorganisation as the group sought to streamline its cost base.
Ms Campopiano added that part of the reorganisation involved preparing the business for expansion in the US and India, where it already has operations.
The group spent around £18m servicing its financing arrangements. It has bank debts of nearly £115m due to mature in 2012. Most of this, £90m, is a fixed loan while a further £14.6m is held as a revolving facility.
Vertex was established in 1996 by United Utilities to handle customer services and generate cost savings on non-core support services. in 2007 it was bought by a consortium of three US investment firms, Oak Hill Capital Partners, GenNx360 Capital Partners and Knox Lawrence International.
