Netstore’s new boss has pledged to build stronger ties between the VAR’s IT security, managed services and consulting units after branding its recent results “disappointing”.
The reseller, which was forced to issue a profit warning in August, posted flat adjusted pre-tax profits of £3m on turnover that increased four per cent to £37.6m for the year to 30 June.
Graham Kingsmill, who joined as chief executive from SAP in July, admitted earn-out clauses relating to its acquisitions of Cassium, SSS and Intercea in 2005 had prevented Netstore from functioning as a ‘joined-up’ business.
“I am disappointed with the numbers, which are indicative that the process of integrating a number of companies was more challenging than we had anticipated,” he said.
“The earn-outs meant we had to keep the businesses in a siloed fashion until they were fulfilled. We are now joining up the businesses and taking advantage of the scalability that offers.
“Once we have established credibility with the customer through our IT security division, there is an opportunity to gain a greater share of their IT wallet by up-selling them to managed services.”
Kingsmill added he would look to “drive out duplication” in the business, although he stressed Netstore was taking on new staff.
Dan Turner, general manager solution centre of excellence at rival security integrator Vistorm, said: “Netstore is doing the right thing. Not only is it integrating what it has, it is also moving to more of a services model.
“But we’re probably three years ahead of it in that we started that transition three years ago.”
Netstore claimed it now has a full line-up of top executives after enlisting Tie Rack luminary David Memory as chief financial officer.
Kingsmill said the VAR plans to double its data centre capacity during the next 12 months after securing power for a second data hall at its site in Reading.
“Having access to increased capacity gives us a competitive advantage,” he said.
ICM awaits Netstore offer