Entu reverses to FY loss; positioned for growth return in 2018
Home-improvements group Entu has reversed to a full-year loss amid a very difficult year, but says it is positioned for a return to growth in 2018.
The provider of energy efficiency products and services said its loss of the 12 months was £5.6m, from a profit of £2.6m. Revenue faded to £87.7m, from £89.6m.
"This has been a very difficult year for the group," said chief executive Ian Blackhurst.
The company's challenges began in September 2015 when, following the government's surprise reduction in solar feed-in-tariffs, it was forced to close its solar business, leaving the group with an overhead base designed for a larger business set on growth.
"We had hoped that targeted acquisitions and organic growth in new, commercial business streams would cover the overhead base, but by the half year it was clear that this would not materialise quickly enough," said Blackhurst.
Entu subsequently acted to scale back on acquisitions, close underperforming businesses and execute a radical restructuring programme to improve operational efficiency and reduce costs in its core home improvements business.
"The restructuring programme also highlighted operational weaknesses that we are addressing by strengthening our management team and improving controls and processes across the group."
Blackhurst said that, despite all the challenges, Entu's home improvements business remained a UK market leader, and the underlying performance and cash generating ability of the group remained substantially unchanged.
"There is still much work to do in 2017 and our immediate priorities are to focus on our core strengths, improve returns in our Home Improvements Division and reposition the business for growth in 2018."
At 13:16 GMT, shares in AIM-quoted Entu were flat at 26.5p each.