M&E specialist Enerveo remains in the red as it shifts away from higher-risk work

Enerveo has reported a pre-tax loss of £1.7m for the second successive year.

The M&E specialist, in its accounts for the year to 31 March, also reported an 11% drop in turnover from £218.4m to £194.7m.

However the firm, which is based in Fareham, Hampshire, said its gross margin increased from 21.6% to 24.6%.

It said: “This financial performance was the result of a strategic realignment that involved continuing to exit from unprofitable projects and focusing on projects with higher gross profit potential.

“The revenue reduction impact…was offset by strong margins. This improvement can be attributed to continued refrainment from pursuing projects in non-core industries in line with the revised sales strategy, which is to focus on profitable gross profit margin projects.”

The firm said it has decided to no longer bid for higher-risk contracts that don’t align with its core services.

The electrical contractor’s customer base predominantly consists of blue chip and public sector companies “with whom they are few recoverability issues.”

Enerveo said it has found a new buyer for its Infrastructure Solution business after a previous agreement fell through. It said it signed a business purchase agreement with the prospective buyer on 23 September with a completion expected soon.

Enerveo was bought back by SSE from investment firm Aurelius Group in 2024. SSE had sold the business three years prior to this. The firm’s losses were narrowed from £10.2m to £1.7m in 2024.