fbpx

M&E specialist Enerveo restructures amid losses

editor

Mechanical & Electrical (M&E) contractor Enerveo has outlined a company restructure amid a downturn in financial results.  

Zak Houlahan, CEO. Credit: Enerveo.

The Birmingham-headquartered company reported revenue of £256.7 million for the year ended 31 March 2023, an 8 per cent fall compared to the previous financial period (FY2022: £278.9 million). 

However, the group maintained an approximate 21 per cent gross margin, up from the approximately 19 per cent margin in the prior year. Its gross profit was £55 million (FY2022: £53.2 million). 

“This financial performance was the result of a strategic realignment that involved exiting unprofitable projects and emphasising projects with higher gross profit potential,” said the company. 

“Additionally, the company initiated a restructuring programme aimed at cost reduction and aligning the sales strategy towards winning and delivering higher-margin projects within the electrical contracting sector.” 

Enerveo managed to decrease its underlying losses and breakeven within the final quarter of FY2023, by avoiding legacy projects in non-core industries, reducing overheads, renegotiating contracts, streamlining operations, and focusing on profit-generating projects.  

For the year ended 31 March 2023, the company reported a total operating loss of £9.4 million (FY2022: £26 million loss) and loss for the year of £10.2 million (FY2022: £27.1 million loss).  

Was this interesting? Try Strong first half results for Galliford Try 

If you have a tip or story idea that fits with our publication, please contact the news editor rory@wavenews.co.uk 

Get industry news in 5 minutes!

A daily email that makes industry news enjoyable. It’s completely free.