2e2 – are there any lessons for the new skyscape of government computing?

2e2 Group Limited
Annual Report & Accounts 2011

• Established for over 10 years
• In the top 20 of UK Software and IT Services providers
• 2,000 employees with 1,200 technical consultants
• 17 offices in 5 countries
• Trusted IT advisor and partner to corporate and enterprise customers
• Agile and innovative approach
• Track record of delivering business benefits and reducing costs through transformational IT solutions
• High-level partnerships with the leading IT vendors
• Business-orientated approach and solutions design
• Named as the “Cloud expert” by the Financial Times
• Deep skills in data centre, unified communications, application consulting, cyber security, and managed services

2e2. What is it?

Let 2e2 speak for themselves:

2e2 is an ICT Lifecycle Services Provider; an agile, customer-focused provider of end-to-end next generation IT services.  The company creates innovative solutions that transform business processes, reduce infrastructure costs and enhance performance – 'creating business advantage' for its customers.  2e2 focuses on solutions and managed services for medium and large private and public sector organisations, delivered on premises, in the cloud, hosted, as a managed service or as a hybrid.  2e2 has worked with many companies within the telecommunications, media, healthcare, retail, transport, public, financial services and professional services sectors.

With glowing customer references from Linklaters, the London Borough of Newham, the London Borough of Waltham Forest, Menzies, Three, Bridgend County Borough Council, the Sussex Partmership NHS Foundation Trust, Allianz, Telefonica O2, McAfee, G4S and Orbit Housing, ...

2e2's annual accounts show a turnover of £396 million in 2011, a small loss of £11 million and net assets of £67 million, ...

all audited by Ernst & Young, who signed the accounts on 30 March 2012.

The accounts were submitted to Companies House (CH) on 24 September 2012 and the next entry on the CH website is 4 February 2013, Notice of Administrator's Appointment.

There's a big, strong board of directors – Graham Love (formerly chief executive of QinetiQ), Nick grossman (NCR), Frédéric Chauffier (énarque, Managing Partner of Duke Street), Simon Burt (KPMG), Matthew Collins (Morgan Grenfell, Merrill Lynch), Terry Burt (NCR), John Loveland (ICL, Wang, Nixdorf, Siemens), Mark McVeigh (NCR) ...

on 30 March 2012 the Directors' Report says that they have no reason not to use the going concern basis for the preparation of the accounts ...

Ernst & Young agree that the accounts give a true and fair view of the state of the undertaking ...

and next thing you know, they're in administration.

In short order, David Bicknell does a good summary of the problems faced as a result of 2e2's failure by five London NHS trusts responsible for the health of 1.27 million people ...

the G-Cloud team offers to help ...

Anthony Miller, managing partner at analyst house TechMarketView, says: "This is actually good news for 2e2’s beleaguered customers" (really?) ...

and Memset offers to help.

This is the hurly-burly of capitalism. It is a good thing.

Is there any sign, in 2e2's published accounts, of the problems to come?

That is, in case they ever publish any, what should we look out for in Skyscape's accounts?