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| Re-arrangement at office2office sends its shares skyward |
| Written by Sam Fountain | |
| Thursday, 28 February 2008 | |
 CEO, Moate was brought in as part of a vast reorganisation The Norwich-based firm said that pre-tax profits had fallen £1.3m to £9m for the year to December, though revenues climbed marginally to £167.9m during a year of 'significant change.' "I am pleased to report that o2o has delivered strong results in 2007 against a backdrop of significant change during the year," said chairman, David Callear. "This restructuring has placed the Group in a strong position." The company said that the period had seen a widespread move by the company to improve efficiencies in logistics and reduce costs, broadening the company's range of business products and related services offerings, and in the process confirming that that o2o is "more than a contract stationer," said CEO, Simon Moate, who joined the firm in July as part of the initiative. It said that it expects a slight drop in revenues for the coming year after its withdrawal from the Ministry of Defence e-auctions but hopes to compensate for it with restructuring benefits. In June, o2o announced that it had decided to withdraw from the e-auction process to supply office products to the MoD under a new four year supply framework because it believed that the quoted selling prices would not generate acceptable profit margins for the company, and product supply ceased in the last quarter of 2007. It also announced during the year however, that its arrangements to supply the NHS had been extended to March 2009 and expanded to include a broader range of products, and that it had received confirmation of a two year extension through to 2010 of supply arrangements with HMRC. "o2o is a solid business with real prospects for longer-term growth both organically and by acquisition," Moate continued. "The strategic review has delivered clarity of vision and purpose and we expect future acquisitions to deliver growth. We believe in getting the basics right." The company said that the restructuring is now substantially complete at a total cost of £2.7m, comprising £0.4m charged in the year ended 31 December 2006 and £2.3m charged in the year ended 31 December 2007, with the full benefits of the resultant savings expected to be realised in 2008. Shares in the firm have climbed almost 13 per cent on the news, rising 14p to 124p.
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SHAREtrack 100
SHAREtrack rushes toward the surface
Bobbing in the tempestuous sea of the world's markets, stocks in the UK are once again making ground in the long climb back to their lofty heights of Summer 2007, with Business Weekly's index no exception.
