ENERGIS, the business telecoms group, yesterday reported its first operating profit after it was taken private to head off bankruptcy two years ago.
However, John Pluthero, chief executive, cautioned that the company’s recovery was still at an early stage. A flotation of the business would not be considered for at least 12 months, he said.
“We are under no pressure from our shareholders,” Mr Pluthero said. “We’re not thinking about listing; and you wouldn’t want to list a business in this market anyway.”
Energis is controlled by a consortium of 15 banks, including Royal Bank of Scotland and Barclays. The banks, which were all lenders to the company, took Energis private in 2002 to prevent it from going under, after it ran up too much debt.
The group earned £4 million in operating profit in the year to March, compared with a loss of £369 million the year before. After interest charges of £30 million, however, the company recorded a small loss on a pre-tax basis.
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Group revenues fell 3 per cent to £745 million. The company was hit by a £67 million decline in internet revenues as low-speed dial-up customers turned to broadband services, the supply of which is dominated by BT.
Energis said it was aiming for modest revenue growth this year, partly by breaking into the broadband supply market. The company confirmed that it had signed a broadband supply contract with its long-time partner Wanadoo, formerly Freeserve, which is owned by France Télécom.
Energis’s high level of debt is the main obstacle to a flotation. Analysts estimate that the company would be worth about £700 million if it had no borrowings. However, that value is reduced to nil once its debts are included.