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M&E firm Enerveo has reported an 83 per cent narrowing of its pre-tax losses, shortly after being bought back by its former parent company.
According to accounts covering the year ending 31 March 2024, nine days after the firm was repurchased by its former parent, energy company SSE, Enerveo shrunk its losses from £10.2m to £1.7m.
SSE injected capital into the business after its acquisition, increasing net assets to £3.6m from a net liability of £5.1m. However, turnover dipped by nearly £40m, from £256.7m to £218.4m.
The firm operated for most of the reporting period under the ownership of private equity firm Aurelius, which had bought it from SSE three years prior. It rebranded as Enerveo from SSE contracting under Aurelius’ ownership.
SSE took back Enerveo on 22 March. It said Enerveo had found it challenging to operate as an independent business.
The firm spent £2m in its most recent financial year relating to SSE’s repurchase: £1.7m on professional services and £300,000 on exiting leases. The year before, the firm had spent £3.9m in splitting from SSE and a further £5.4m in restructuring costs.
Director Luca Warnke said that the year’s financial performance resulted from exiting unprofitable projects and focusing on projects with the potential for higher gross profit.
He added the results also reflected the full year impact of an August 2022 restructuring plan aimed at reducing overheads.
The average number of employees dropped from 1,444 to 1,097, following a cull of nearly 300 employees the year prior.
Enerveo predicted an exceptional loss of £17.4m from selling its infrastructure solutions arm would show up in next year’s results.
The firm entered into an agreement with a buyer in October 2024 and is expecting the sale to complete within months. It expects to write off £15.4m in working capital transferred in excess of consideration and £2.3m in disposal costs.
Also in October, SSE waived £31.4m in intercompany balances owed by Enerveo, improving the firm’s net assets.
Enerveo specialises in high voltage engineering, electrical vehicle charging point installation and LED lighting.
It claims to be the UK’s largest street lighting contractor, responsible for managing around one million units of street lighting across 24 local authorities.
In 2024, Enerveo dropped five places in Construction News’ annual ranking of contractors, the CN100, and two places in CN’s ranking of M&E contractors.
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