Ezentis Group: Brilliant Corporate Turnaround and Inclusion in the CFI Top 100 List for 2013
Spain’s Grupo Ezentis has been hailed by our Judging Panel as ‘An extraordinary corporate turnaround success in a country which – although still experiencing severe economic difficulties – is showing some signs of recovery. Spain’s eventual revival will to a significant degree result from the efforts of companies such as Ezentis. And we now welcome its inclusion in the CFI Top 100 List for the year 2013’.
New management took over in September 2011 when this leading technology and telecommunications company was facing bankruptcy. The critical tasks ahead were not only to restore business confidence but to protect the livelihoods of the 5,000 employee families. (Such was the confidence of staff members that when salaries were temporarily reduced across the board by 30% not one person complained.) The teams’ objectives were accomplished in a remarkable corporate restructuring programme, completed in August this year, which included the sale of non-core businesses and resulted in a reduction in the ratio of debt to earnings from fifteen times to two times.
With more than 90 per cent of turnover resulting from promising business in Latin America, the panel are expecting to see great strides forward from Ezentis. The judges commented that, ‘The directors of the Group expect to see very healthy increases in the share price and we don’t think that anyone will be disappointed. This brilliant turnaround is the talk of Spain and rightly so.’
