Record order book at Enterprise

MAINTENANCE and support services group Enterprise is defying the downturn with the biggest order book in its history.

The Preston-based group, which was bought by private equity outfit, 3i, in 2007, said it has bids of more than £10bn in the pipeline and an order book of £4.2bn.

The group’s revenue is almost exclusively from utility and public sector organisations in the UK and therefore it has been largely insulated from the downturn. Recent contract wins include Staffordshire County Council, Transport for London (TfL), National Grid and Severn Trent.

It has also stepped up recruitment and took on  60 graduates  in 2008.
In the 12 months to December 31 turnover rose 29% to £1.09bn, operating profits were up from £17.7m to £26.3m on the back of increase government contract wins.

The group is financed by debt of £540m, while it also holds £75m of PIK notes, preference shares of £49m and shareholder financing of £172m. The group said it has a revolving credit facility of £110m, of which £30m was used during the period  In the wake of the buyout by 3i, interest charges were £45m.

Chief executive Owen McLaughlin said: “The prospects for the business are very good. The size and scale of the work we are producing for our customers is unprecedented and the pipeline and order book are the largest in the company’s history.”

“The achievements of the business since it was de-listed from the London Stock Exchange in June 2007 have exceeded the expectations of all stakeholders, despite the well publicised economic conditions. We are working closely with our customers so that they can deliver very high levels of satisfaction at the least cost to their consumers, combined with a positive contribution to the broader social agendas.”

After finance and interest charges of more than  £100m Enterprise declared a bottom-line loss of £61.5m.