MANCHESTER Enterprises - formerly Manchester TEC - has defied critics to emerge from its first operational year exceeding expectations.

Unveiling the group’s maiden accounts, chairman Graham Melmoth said the group - which incorporates MIDAS, Chamber Business Enterprises and Skills Solution - had performed better than anticipated.

Group turnover for the year ended March 31 reached £68.8m, with a surplus of £2.3m. While turnover for Manchester Enterprises itself clocked £53m, returning a surplus of £678,740.

‘‘This has been a transitional year for Manchester Enterprises and the group,’’ said Mr Melmoth, who is also chairman of one of Manchester’s largest companies, the Co-operative Group.

‘‘We have exceeded targets set for a year of enormous change and uncertainty, which has put us in an excellent position for the future. There are a number of new developments which should start to yield results during 2001/2002.’’

The group is currently repaying £2.9m to the government as a proportion of operating surplus accrued by the TEC. Of this, £1.5m has already been paid with the balance to be settled this autumn.

Duties

Set up last year, Manchester Enterprises assumed some of the duties of Manchester TEC, while the responsibility for contracting youth and adult training passed on to the newly-formed Learning and Skills Council.

As a not-for-profit organisation it brought together the work of MIDAS, the Careers Partnership and the local authorities of Manchester, Salford, Tameside and Trafford to provide business support, training and jobs in the region.

Director of skills and employment Paul Thomas said the first year has been one of adjustments.

‘‘Last year was important because we were working to bring together all the additional companies,’’ he said. ‘‘What we have been doing is bedding down the new structure and getting people into their new roles. In that respect we have exceeded expectations.’’

A three-year economic development plan has been established which includes schemes to build better businesses, attract investors and create a world-class workforce.

The area covered by the organisation has been extended to cover Stockport.

Achievement

A key achievement of the year was the foundation of the Employment and Regeneration Partnership, drawing together funds from New Deal, the Single Regeneration Budget and the European Social Fund.

With a budget of £18m, the agency was given the remit of helping the long-term unemployed develop skills and find work.

Performance across the agency’s network of employment centres was hailed as excellent in the annual reports. Already, over 3,100 people have received career guidance, with 1,013 being helped into work and 796 moving into education or training.

The Manchester Investment and Development Service (MIDAS) was cited as another of the year’s success stories. Over 1,700 inquiries were handled, with targets for both investments and jobs exceeded, despite fears of a slowdown towards the end of the year.

And Paul Thomas says there’s more to come.

‘‘We have established a strong foundation for the future and there is an increasing recognition of what Manchester Enterprises is about. Now we are looking to build on that.’’