Morse sees profits return after restructure
It's still 'challenging' out there though
Morse predicted a continuing "very challenging trading environement" as it unveiled a turnaround in profits in its first quarter this morning.
The IT services group turned in total revenues of £47.1m for the quarter ending September 30, compared to £55.8m last year. But operating profit was £1.9m, compared to a loss of £500,000 a year ago. The firm has been undergoing a restructure, and on an EBIT basis, profits were £1.3m, compared to a £1.2m loss a year ago.
It's UK infrastructure and services business - its biggest - "delivered substantial profit improvement" in what is usually its weakest quarter. It also saw improvement at its Spanish and Irish operations.
Morse's business applications services business saw revenues head south, as expected, though profitability improved here as well.
Despite the improvement in its figures, it warned "the trading environment for all our businesses continues to be very challenging." At the same time, it said, its restructure meant it had a simplified operating structure and reduced cost base and its businesses were focused on delivering profits and cash flow. ®