Energis earnings up, losses up

And CEO Grabiner off to find life

Energis, the UK business telecoms company, has announced an increased pre-tax loss for the year of £100.6 million but a 50 per cent increase in earnings, 70 per cent increase in turnover and a step up in operating profit from £9.1 million last year to £47.0 million.

Despite sure signs that Energis is fit and healthy - and may even make a profit at some time in the future - the share price has barely shifted, tripping up 2p to 268p this morning.

This may have something to do with the departure of chief executive Mike Grabiner after 5 years. Grabiner is a talented man but said he was leaving without a job because he wants to get a life. "I have no job to go to and no idea what I'll end up doing. I just know I'm 50 and I want to do something entirely different while I'm young and energetic enough to do it," he said.

He will be replaced by the current COO David Wickham, who joined Energis in December 1999.

Interestingly, Grabiner has said he wouldn't want the job of CEO of BT - currently held by much-maligned knight Peter Bonfield. Grabiner would be a good choice as replacement as he worked at the telecoms giant for four years in several senior positions. Obviously the reported £5.5 million that Sir Pete may get before leaving the company he screwed up doesn't entice him. Mike won't go without though, so don't worry.

Enough of this though. Energis' results are as follows (all comparisons are year-on-year):

  • Total turnover up 70 per cent to £840.4 million
  • UK turnover grew 54 per cent to £683.7 million
  • Continental turnover up 218 per cent to £156.7 million
  • Earnings before interest, tax etc up 53 per cent to £141.7 million
  • Group operating profit before amortisation is £22.3 million
  • Internet services shot up 108 per cent to a turnover of £336.7 million - 40 per cent of Energis' total revenue
  • Restructuring costs of £1.3 million
  • Total depreciation of £119.4 million (up 38 per cent on last year)
  • Goodwill up to £39.5 million from £11.9 million

The company is also increasing its market share and working on bigger margins. However, it does not expect to make a profit or offer a dividend for another few years yet. ®

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