News
30/05/2006
2e2 announces 2005 results
Revenues and profits increase again in a strongly performing year
2e2 Group Ltd
(‘2e2’ or ‘the Company’)
Results for the Year Ended 31 December 2005
2e2 Group is a provider of IT Managed Services in the UK and the Netherlands. Managed Services is the outsourcing of IT Infrastructure requirements to one or a limited number of providers at an agreed level of service at a set price.
FINANCIAL HIGHLIGHTS
- Revenues increased to £112m from £62m in 2004
- Operating profit* increased by 75% to £8.8m from £5m in 2004
- Contracted revenues represent 50% of historic revenues at close of 2005
- Cash balances remains strong
- Excellent forward visibility of 2006 Gross Margin
OPERATIONAL HIGHLIGHTS
- Strong organic growth at over 20%
- Major organic project and service contract wins, with four valued at over £5m
- Acquisition of 2e2 Offshore, TriSys and Yul Data Security
- Managed services revenues represent 30% of total revenues
- High service levels and customer satisfaction maintained
- Founders awarded Entrepreneur of the Year award
Terry Burt, 2e2’s Chief Executive commented:
“2005 was a significant year for the Group, one in which it reinforced its position as a major independent IT Services provider and increased its proportion of true managed services business to 30% of revenues. Market forecasts predict that overall market growth rates in the Software and IT Services sectors will run at around 6% in 2006 with higher rates in our focus areas of managed services and IP communications. We believe we are well positioned to capitalise on these opportunities.
Trading has begun strongly in 2006 with several notable contract wins, and we look forward to another successful year. We expect to deliver strong organic growth in both revenues and operating profits, which should be enhanced through further selective acquisitions to add both increased scale and complementary services to the Group.”
The full annual report and accounts may be downloaded from the About Us/Corporate Information/Company Reports page
