Telecoms firm Commsworld posts £6.9m loss
Commsworld, the telecoms service provider, has reported a £6.9 million pre-tax loss despite a 20% rise in turnover.
The Edinburgh-based company said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose from £2m to £3.8m for the year to the end of 2021 on income up from £20.6m to £24.1m.
But £9.6m of administrative expenses left the company deep in the red. The figure was lower than the £8.33m pre-tax loss in 2020.
Chief Executive Steve Langmead said the company had ridden the upheaval of the COVID-19 pandemic in 2020 and continued to grow both its core enterprise business and expanded its customer service base last year.
Commworld’s balance sheet shows long term debt is £53.2m from £56.5m in 2020.
The accounts show that the highest paid director received £190,400, up from £153,013 in 2020. The company employs 91 staff.
A spokesperson for Commsworld Group said: “Commsworld Group made an underlying profit as accurately reflected in its EBITDA figure of £3.8m which is up from £2m in 2020.
“The pre-tax loss of £6.9m is after taking into account depreciation of £1.1m, amortisation of goodwill at £4.6m and accrued loan note interest and debt issue costs of £4.2m and bank interest of £0.5m.
“The only one of these four deductions which is a cash item is the £0.5m of bank interest, the others are simply accounting for depreciating assets and accruing for investors loan note interest which is typical for privately-owned businesses.
“EBITDA is the highly recognisable measure that businesses like Commsworld use to consistently measure the progress of financial performance along with strengthening of its future order book and operating cashflows, all of which improved during 2021 at Commsworld.
“As a result, Commsworld expects its year on year turnover and profitability to continue to grow in 2022 and beyond.”