Xploite spots opportunity for consolidation

VAR Xploite confirmed it will plough on with its buy-and-build strategy as it posted a 60 per cent rise in sales for its fiscal 2008.

The reseller, which has acquired five storage and managed services outfits in the past two years, saw turnover from continuing operations in the 12 months to 31 October swell 60 per cent to £46.3m.

Adjusted earnings before interest, tax, depreciation and amortisation of goodwill, including discontinued operations, more than trebled to £4.3m.

Xploite chief executive Ian Smith said in a statement: “Demand for managed services in both the public and private sector continues to increase.

“Trading has started well in the current financial year which, with growing forward visibility and strong cash generation, gives us confidence for another good performance."

Since March 2007, Xploite’s strategy has centred on acquiring and consolidating underperforming IT services firms. Recent conquests include IBM partners Anix and Red Squared.

Chairman John Standen indicated that Xploite would continue in the same vein in 2009.

“We create shareholder value by identifying and acquiring underperforming businesses, integrating and developing them, and improving their performance through 'active management',” he said.

“We continue to believe this remains a sound strategy, particularly in the current market where there are significant new opportunities for consolidation.”