2e2 calls in the administrators
The Berkshire based 2e2 group has called in the administrators following mounting debts and a missed bank covenant. Joint administrator Simon Granger said “We are working closely with management and other key stakeholders to ensure the continued provision of business critical services to the group’s customer base. In parallel we are exploring strategic options for the UK business and we have commenced a disposal process for the overseas subsidiaries”. The 2e2 company employs about 2000 people.
The last accounts filed with Companies House (for 2011) show a group turnover of £404 million and an operating profit of £20 million but thanks to a restructuring charge and interest repayments, there was a net loss of £8.4m. A long-term debt of £270 million is shown on the balance sheet of 2e2 Holdings and the company paid £23 million on interest in calendar year 2011. Investors include Barclays, HSBC, HIG, Duke Street Capital and Hutton Collins – however reports in The Register say there are trade debts of “tens of millions”.
In the UK legal sector, Linklaters has been a user of the 2e2 services and in September 2012 Peppermint Technology said 2e2 had joined its partner academy programme in a move that “will add a degree of scalability to the Peppermint offering that will appeal to bigger firms.”