office2office plc (o2o, the Company or the Group), the managed procurement and business critical services group providing a range of office related supplies, announces its half yearly results for the six month period ended 30 June 2011.
Highlights:
- Revenues were £99.5m, held back by lower public sector spend (2010: £107.7m)
- Underlying profit before tax (1) was £4.1m (2010: £6.0m)
- Profit before tax was £2.8m (2010: £3.1m)
- Underlying earnings per share (2) were 8.5p (2010: 12.2p)
- Basic earnings per share were 5.9p (2010: 6.5p)
- In May 2011, the Group’s banking facilities were successfully extended to 2015
(1) Profit before income tax, exceptional and non-recurring costs, amortisation, negative goodwill and share option expense
(2) Profit after tax (before the after tax effect of exceptional and non-recurring costs, share option expense,
amortisation of intangibles and negative goodwill relating to acquisitions) divided by the weighted average number of
Ordinary shares in issue.
David Callear, Chairman, said:
“Record new business secured in the first six months of 2011 will generate over £50m of additional annual revenue, equivalent to 25% of the Group total for 2010. These wins include the Advantia contract, the LUPC award and the largest UK public sector contract for office supplies ever awarded announced by the Government today and which maintains all our existing office products business whilst adding at least £24m of additional revenue.
This new business reflects the hard work over the last two years to rationalise and reposition o2o in order to compete more effectively with our open book managed procurement model. The key to the Company’s success, in addition to making it more efficient at all levels, is to work alongside our clients to achieve transparency on pricing, find solutions to meet Government and corporate sustainability targets and provide a range of services beyond our traditional office supplies business.
Trading performance in the period has been positive in the private sector but volumes in the public sector have been lower than anticipated due to Government pressure to reduce its own costs. However, the new business wins will underpin a stronger second half with the full benefit coming through from 2012. The Board is pleased with the progress being made and confirms that it is maintaining the interim dividend of 3.6p, reflecting its confidence in the future of the business.”
For further information, please contact:
office2office plc
Simon Moate
Mark Cunningham
Tel: 01603 691102
Cardew Group
Tim Robertson
David Roach
Georgina Hall
Tel: 0207 930 0777