Services was the name of the game for Concorde Informatics in 2010, as the VAR's change of direction helped it soar into profitability.
The firm, which is the foundation for buy-and-build outfit Concorde IT Group, saw 2010 sales decline about £1m to £5.9m. Despite the top-line contraction, operating profit was up 68 per cent to £118,000.
Concorde IT Group chief executive Colin Meakin told ChannelWeb: "The aim is to try and double operating margins in 2011, and we won't do that by doubling our prices. It needs an increase in economies of scale. We believe we can win more services contracts, and efficiencies continue to come from the excellent people that we take on board."
The disposal of Concorde's software business in 2010 helped net profit climb to more than £670,000, compared with a £6,000 net loss in 2009. During the year the company also slashed overheads by closing down two non-core sites in West Yorkshire, in Brighouse and Huddersfield.
Sales from professional services and other annuity revenue streams were up a massive 60 to £1.8m in 2010. Order book value stretched past the £1m mark.
"When we took over Concorde two years ago we decided we were going to reduce our reliance on high-volume and low-margin hardware sales and concentrate on managed services and renewal services," added Meakin (pictured).
Cash reserves rose 50 per cent to £346,000 as of 31 December and the company's net worth doubled to £1.2m. Meakin said his firm's cash-rich position would allow it to make a fifth acquisition shortly.
"I'm looking at one at the moment," he added.
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