Full year sales were GBP233.8 million, up 8% on the previous year. Within this, second half sales grew by 25% to GBP129.9 million compared with the first half and by 12% year on year. Excluding the ScottishPower facilities management contract, full year sales grew 10% to GBP209.8 million, with second half sales up 26% to GBP117.1 million over the first half and up 18% year on year. Moreover, excluding sales from consumer facing operations, business service sales grew 31% to GBP160.1 million year on year, with second half sales up 39% to GBP93.0 million over the first half and by 37% year on year.
The Company’s profitability for the year was, as expected, affected by our continued heavy investment in network infrastructure and service expansion with gross profit for the year falling from GBP89.9 million to GBP60.5 million. In line with this investment, EBITDA for the full year was negative GBP21.4 million, showing strong improvement in the second half – reducing from negative GBP17.3 million to negative GBP4.1 million.
Cash inflow from operations was GBP2.5 million compared with an outflow of GBP2.3 million in the previous year.
As this was the last year of major UK geographic expansion of the network, capital investment totalled GBP158.9 million, down slightly from GBP160.9 million in the previous year. Net debt at the year-end was GBP167.8 million, compared with net cash of GBP24.5 million last year, and gearing was 37%.
Commenting on the results, William Allan, Chief Executive said:
Our improving performance demonstrates a successful strategy to move our Company from a regional to a national, business focused, service provider. The service integration, network reach and quality provided by Thus has already attracted a portfolio of large scale, national corporate and SME accounts.
Over the year we have launched nine new services, each of which is now contributing revenue, and we enter the current year with confidence in our strategy and prospects. Our national network is complete and generating revenue across the UK. We have established an enviable reputation amongst our customer base for quality innovative services. As well as integrating our core businesses and developing a broad product set, the disposal of non-core assets is well advanced.
Assuming no material change in the current economic climate, the Board remains confident that underlying growth in business services will be maintained in this financial year. Excluding the Interactive services division, revenue growth is expected to be in excess of 20% and EBITDA positive over the year as a whole.
