A rejection of "revenue flattery" business allowed Nimans to post a healthy margin boost in its 2011 fiscal year, despite the loss of its Avaya franchise putting a £6m dent in its top line.
According to documents filed with Companies House this week, the Mancunian distributor saw revenue for the 12 months to 31 December 2011 decline almost five per cent year on year to £74m.
The directors' report for the year explains that the firm's Avaya partnership, which came to a formal end in February 2011, "accounted for circa £6m of revenue". The top-line decline was also partly attributed to "turning away business that was revenue flattery but delivered no margin".
Despite the sales fall, operating profit grew 36.2 per cent to more than £3.1m. This equates to a big boost in margins, from 2.9 to 4.2 per cent.
"The results were consistent with the board's expectations given the current economic environment, and leaves the company well positioned for future investment and growth," adds the report. "Management and staff have worked hard to deliver a robust set of results in what is a difficult economic period within the UK."
Over the course of the year Nimans' net assets increased by almost £2m to £17.65m. Staff numbers were also on the up, growing from 228 to 241, with the bulk of the additions joining sales and distribution teams.
Security firm set to become part of acquisitive Shearwater Group
Distributor merges three northern sites into one new hub in Warrington
Activist investor puts forward five director candidates as turmoil continues at security giant
Nima Green asks what is driving public cloud uptake in Germany