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Outsourcing business Vertex is now officially up for sale, but may only make half its asking price after profits fell from £8.1m to £3.5m. Parent company, United Utilities, said last week that half-year operating profits, before restructuring costs, had fallen by more than 50% in a year. According to the group, Vertex was not a ‘long-term, strategic hold', and it was up for sale. The MJ reported in June that United Utilities had hired Merrill Lynch to look at offers from the City for the subsidiary, which has an annual turnover of £400m. Interim results from the parent company reveal that Vertex is in the early stages of a number of contracts, including a long-term deal with Thurrock BC. ‘This is a pivotal moment in the development of Vertex,' said the subsidiary's managing director Tom Drury. ‘The decision to divest the company has been taken in the full knowledge that Vertex will continue to develop its potential and future value. And following 10 years' support from United Utilities, the divestment of Vertex would represent the beginning of an exciting new phase in the development of the business. ‘We remain fully committed, and the recent news will have no impact on any of our operations. It remains very much business as usual at Vertex.' And United Utilities' chief executive, Philip Green, added: ‘Our strategy is to focus on our core skills of managing water, wastewater, electricity and gas networks to create a world-class operator of utility infrastructure. We aim to create a high-performance company and leverage our core skills in related outsourcing markets. Vertex has a number of high-profile local government contracts, including Westminster City Council and Hertfordshire CC.

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BUSINESS

Group puts Vertex up for sale

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