Insider Media Limited

Revenue and earnings have contracted at EnServe Group after a year of restructuring at the business formerly known as Spice. But the company, which disposed of non-core divisions during the year, said it was well-placed for growth in its principal markets.

The former FTSE-listed utility support services provider, which has significant operations in Yorkshire, was acquired in December 2010 by European buyout firm Cinven in a £251m deal.

In accounts filed at Companies House for the year to 30 April 2011, the first since the deal and rebrand, EnServe reported EBITA of £27.2m on turnover of £300.7m. Sales had shrunk by 1 per cent compared to 2010 while EBITA had fallen from £37.5m.

The reduction in revenue and earnings comes despite EnServe's pledge at the time of its rebrand to double in size over the next four years. However, the company did dispose of its non-core gas, telecoms and facilities divisions during the year.

The group, which employs about 3,380, now operates in two principal markets, utility services and energy consultancy services, and said profits had fallen in both.

The timing of contract wins meant profits in energy consultancy services were lower than expected while utility services fell "significantly short of expectations" due to low volumes in the first year of the new regulatory cycle.

In energy consultancy services, revenue fell from £40.9m to £37m and EBITA dropped from £18.1m to £15m. Earnings in EnServe's utility services division halved from £26.7m to £13.9m despite slight revenue growth from £262.4m to £263.7m.

The group incurred £14.8m during the year relating to the costs of the takeover and the subsequent restructuring following the acquisition by Cinven.

Chairman Sir Roy Gardner said he was optimistic that performance would improve during the current financial year as asset spending plans are approved and implemented by EnServe's customers.

That optimism was based on "market leading" positions in its two main markets which EnServe said meant it was well-placed to take advantage of regulatory and environmental drivers in the utilities outsourcing marketplace.

Looking forward, Gardner said he expected the company to focus on maximising organic growth together with complementary acquisitions.