Finance charges keep LBM in the red

LBM, the Altrincham-based contact centre company which employs around 2,500 staff, increased sales by 7% in the year to May 31 to £48.7m, but finance charges of £5.6m on its growing debt pile of £50.8m (2010: £47.6m) meant that it declared a pre-tax loss of £2.7m.

The figure is a 38% improvement on last year’s loss of but indicates that despite improving margins, the company is not generating enough revenues to pay down its debts. Revenues peaked at £55m in the year to May 31, 2008, and have not recovered since.

Moreover, several years worth of pre-tax losses mean that its liabilities now outweigh its assets to the tune of £27.3m, up from £24.6m last year.

LBM Holdings has been owned by ISIS Private Equity since it took a majority stake in a £50m management buy-out seven years ago.

It provides outsourced sales and contact centre services to clients operating in various sectors including financial services, utilities and media.

However, a directors’ report accompanying the firm’s accounts from chief executive Mark Bates states that directors “have a reasonable expectation that the the company have (sic) adequate resources to continue in operational existence for the foreseeable future”.

Last month, the company also announced that it had taken a further 6,000 sq ft of space at a unit next to its Atlantic Point base to grow its contact centre.

The company currently occupies 30,000 sq ft at Atlantic Point, as well as operating contact centres in Stockport, London and Belfast.