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Outsourcing specialist Vertex has slashed its losses from 30.7 million Pounds to 2.3 million Pounds over the past year following a spate of acquisitions and sales, the Business Desk reports.
The Liverpool-based customer management outsourcing business has seen its turnover increase to 365.9 million Pounds in the 12 months to 31 March 2010, from 354.8 million Pounds last time. But the directors' report and consolidated financial statements also show that its operating profit before interest, tax, amortisation and exceptional items fell to 14.7 million Pounds from 21.2 million Pounds.
It attributes this fall in operating profit to the disposal of its 1st Software and The Exchange businesses.
Vertex, a former United Utilities division which handles websites, call centres and back office operations for local authorities, utilities and retailers, employs 6,664 staff, of whom around 2,500 operate from its North West offices in Manchester, Warrington, Bolton and Liverpool.
Vertex is owned by US-based private equity firms led by Oak Hill Capital Partners as well as GenNx360 and Knox Lawrence International.
On 31 March, Vertex sold three American companies, First Revenue Assurance LLC, IEI Financial Services LLC and Utility Portfolio Solutions LLC, for just $1 and posted a $12 million loss on the disposal.
Last August, Vertex also sold 1st Software Group and Exchange FS to VTX Holdings netting the company 27.52 million Pounds.
Vertex bought Vertex US Holdings II Inc and Vertex Canada Holdings II for 20.8 million Pounds in October 2009 and these businesses have contributed 40.6 million Pounds to its revenue and a 100,000 Pounds loss before tax over the past financial year.
On 3 March 2010, the company bought Australian companies Call Active and Peripheral Computer Industries Pty for 4.8 million Pounds.
The directors' report states "the group has made substantial progress in its planned transformation to a focused customer management outsourcing business."
"During the year, acquisitions have been made in North America and Australia to strengthen the group's presence and focus while businesses that did not fit the core strategy have been disposed of."
Commenting on progress in the current financial year, the accounts also stated "in May 2010, further to the group's strategy to focus on customer management outsourcing the US business and assets of the multi-family business were sold to NWP. This business was not considered core to the group's operations and was not integrated with the North American business."