A heightened focus on its partnerships with Microsoft and Cisco has been key to Damovo UK quadrupling its profitability this year, according to recently appointed managing director Simon Payne.
Having joined Damovo in 2009, Payne moved from the deputy MD role into the top spot this year. In the past 18 months the senior management ranks have also been bolstered by the appointments of sales director Marcus Cuthbert, finance and commercial director Bill Gillespie and head of portfolio and consultancy Kevin Little, alongside 11-year Damovo veteran and head of service operations Alex Williams.
Payne told ChannelWeb he has spent his initial months in charge sculpting the business around three key technology sectors: unified communications and collaboration; data networking; and managed connectivity, with the divisions built around key partnerships with Microsoft, Cisco and telephony duo Mitel and Aastra.
Revenue from the Mitel and Aastra legacy customer base is ticking along, claimed Payne, but "the practices that are growing almost out of control are Microsoft and Cisco".
"We have made ongoing investments in our Microsoft and Cisco business; in both of those areas we have the highest level of accreditation," explained Payne.
Damovo UK's financial results for the year to 31 January 2012 show that operating profit before exceptional items stood at £271,000 on sales of £30.6m. Payne claimed that growing the bottom line was his primary focus and predicted that FY13 numbers would show a big boost in profitability.
"For me, revenue is window dressing – it is largely irrelevant," he said. "I am looking at margin and profitability. We have seen exceptional growth [in this regard], and are expecting a fourfold increase in profitability this year."
Other investments made on the new head honcho's watch include increasing the implementation of a solutions team and a doubling in size of the new business sales force.
"We have a focus on client acquisition at the moment," he explained.
Next year could also see the Horsham-based integrator get back into the acquisition game, but Payne (pictured) stressed that he would look at bolt-on buyouts of smaller specialists, rather than big, volume-centric deals.
"We will continue to look at small, niche acquisitions in the market," he said. "Any acquisitions we would look to would have to deliver, first of all, shareholder return, and secondly fill a hole in our portfolio."
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