Drinks distributor WaverleyTBS returned to profit in 2010 after a significant restructure saw cost savings of about £20m over a two-year period. The company, which was sold by Heineken UK in June 2010, reported profit for year after tax of £2.242m for the year to 31 December 2010, against a loss of £4.992m in 2009. Ebit margin improved from 0.1% to 1.1% and net operating assets increased from £2.1m to £18.2m. Turnover fell from £503.571m to £349.978m. “2010 was a year of major transformation for the business,” the company said. “The restructuring initiatives, launched in 2009, were completed in September 2010 - consolidation of the sales team, the establishment of a centralised customer service centre and the closure of 10 distribution depots in outlying geographical areas. “The scale of the business was radically reduced with the exit from three significant but unprofitable national accounts, and a reduction of 2,000 free trade customers following the closures of the outlying regional distribution depots. “Overall cost savings were on plan at approximately £20m over a two-year period.” In addition, staff numbers were reduced by 300 in 2010. Staff costs fell from £39.872m to £31.786m. Managing director Jonathan Townsend said: “We have a number of new initiatives and investments planned in 2011 including a fully upgraded systems infrastructure to support our business growth and exclusive distribution/agency relationships with premium brands.” WaverleyTBS said market conditions “remain difficult”, with another year of volume decline across all major drinks categories in the on-trade. “The outlook for the on-trade channel is a continuation of volume declines but the business has positioned itself to deal with these challenges through a number of different competitive initiatives and relationships with customers and suppliers.” The directors recommended that a dividend is not paid.