BNS shrugs off loss to plan jobs growth

May 1 2008 by Andrew Mernin, The Journal

TELECOMS services group BNS has announced plans to create 200 jobs in the next two years despite unveiling half-year losses yesterday.

The AIM-listed company – headquartered in Prudhoe, Northumberland – reported pre-tax losses of £1.16m in the six months to the end of January.

The company, which discontinued its loss-making network services division last year, saw revenue climb 44% to £16.39m in the period while underlying operating profit stood at £530,000, compared to £831,000 the previous year.

However, despite the pre-tax losses, the business remains positive on its outlook, having transformed itself into an IP telecoms carrier in recent months and taken on 50 new North East employees since Easter.

Chief executive Garry Moat said the company remains on a North East recruitment drive and is hoping to build a new facility next to its Prudhoe headquarters.

He said: “We are still recruiting in the North East and we’ve taken on 50 people since Easter. We are on a big recruitment drive in our sales department.

“Over the next year we will take on 100 staff and up to 200 over the next two years and we are speaking to our architects about building a new building at our headquarters.”

Last October BNS closed its Network Services Division with the loss of around 20 jobs in London.

According to Mr Moat the company is on target for an improved performance in the second half of the year now that the loss-making operation has been off-loaded.

Mr Moat said: “Following the final closure of the loss-making network services division a continued improvement in trading results in the second half is anticipated.

“This will be built on the profitable performance of our mobile operations and the increasing market penetration of our IP solutions.”

In the last three months BNS shares have fallen from around 26p to 18p.

PAGE TWO: Take a look back at the changing fortunes of BNS.