TSC announce record profits as backers emphasise their commitment

Telecom Service Centres, Scotland’s largest contact centre company, have announced a significant annual turnaround– reversing a £1.2million operating loss from the previous year into a profit of £2.5million.
 
At the same time, the company’s majority shareholder, Lloyds TSB Development Capital, have underlined their support for the business by investing over £11m in a recent rights issue which repays outstanding loan notes and significantly enhances the Group’s balance sheet.
 
In his report to directors, Chief Executive Ken Hills highlights that the two previous years had proved challenging and puts last year’s turnaround in performance down to the drive and commitment of the new management team.
 
TSC, formed in Bute in the mid-90’s, had been the subject of a £28million Lloyds-funded, management buy-in February 2003. Hills was brought in as Chief Executive just over a year later after some management upheaval with the original mbi team and is satisfied with the substantial change in the company’s performance.
 
In the past year the company has expanded with new sites in Glasgow, the Isle of Lewis and Yorkshire’s Dearne Valley – their first operation outwith Scotland, and now have over 2500 employees in 10 UK locations.
 
As well as consolidating and expanding business with blue-chip clients such as Vodafone and T-Mobile, they have attracted new business from world –renowned companies such as Hewlett Packard and HSBC – all this at a time when the UK contact centre sector is supposedly under threat from off shore competition.
 
“The results are very pleasing,” admits Hills. “We have recovered extremely well from some difficult times and have proved that a well-structured, well-run British company can more than hold its own against overseas competition.
 
“I see no reason why we cannot continue this growth and further enhance our position not only as Scotland’s largest contact centre company but as one of the top players in the UK market.
 
“In the past few months, we have formed strategic alliances with companies in South Africa and India which gives us an off-shore facility and allows us to offer the best of both worlds to present clients and future customers.
 
“This is the way ahead for British contact centre companies. And TSC are at the forefront in offering this on-shore, off-shore joint capability.”
 
Hills is particularly pleased at Lloyds decision to finance the rights issue, with TSC’s Finance Director Dean Hartley noting that “this is an important part of ensuring an appropriate financial structure is in place to support the continued growth in the business”.
 
Hills re-emphasises this statement and is confident TSC can build on this improved performance into the New Year and beyond.