Prior to BuildOnline’s merger with Citadon to form CTSpace, its financial performance in the UK was getting even worse.
As previously discussed (see BuildOnline and Koral on 14 November 2006 and BIW’s growth continues – but what about the others? on 8 November 2006), BO’s latest Companies House accounts show its UK business was already struggling in early 2005. A year later, its position had worsened: turnover in the year up to 31 March 2006 was 2.2% down at £2.793m (2005: £2.856m), while its pre-tax losses were 74.8% up to £0.963m (2005: £0.551m).
If CTSpace CEO Howard Koenig is to meet his objective of breaking even by the end of this financial year-end (see post), it will require either a dramatic turnaround of the UK business or, if that is not forthcoming, excellent performances from the rest of CTSpace’s operations to compensate for the under-performing UK division.