Over a year ago a new management team was parachuted in at Managed Support Services, led by Simon Beart. An impressive turnaround has taken place over that time, with the company now profitable, generating cash and looking to expand further through acquisitions. Today investor’s were reminded just how impressive the turnaround has been at Managed Support Services.
For the 12 months ended 31 March 2009, the company increased revenues by £10 million to £26.3 million, while gross margins surged 28%. Adjusted earnings per shares improved dramatically, to 1.35 pence (2008: loss 5.5 pence) and adjusted profits before tax improved equally well, to £1.65 million (2008: loss £3.2 million). Cash balances at the end of March stood at £12 million, more than 50% of the current market capitalisation of the company.
Today’s results should come as no surprise to followers of Simon Beart. Beart’s track record highlights his skills as a turnaround specialist. He co-founded packaging firm Britton Group in 1992. This was floated and then acquired for £250m in 1998. After that he took the reins at software outfit XKO Group and refocused the company following the downturn in the IT sector. After a name change to Revenue Assurance Services, this company was sold for £110m in 2007.
Managed Support Services has four business units supplying, installing and maintaining heating, ventilation, air conditioning and catering equipment. It also offers interiors and shop fitting services. It’s all unglamorous stuff, but then that’s often no bad thing when it comes to investing.