VAR Ultima Business Solutions is investing in its technical capabilities following another year of double-digit sales growth in its fiscal 2012. But the Reading-based reseller did see operating profits more or less stand still as it witnessed "continued pressure on product margins throughout the industry".
According to documents recently filed with Companies House, Ultima's sales for the 12 months to 31 March 2012 grew 15.1 per cent year on year to more than £67m. Operational profit rose a comparatively modest 1.3 per cent to a little over £1.5m. This resulted in a decline in operating margins from 2.6 per cent to 2.3 per cent.
Revenue generated overseas accounted for almost £2.5m of the firm's total sales in FY12, an increase of more than £1m on the prior year. Over the course of the year net assets nudged up from £2.4m to £2.5m, while staff numbers grew from 236 to 251.
The directors' report for the year cites customer retention as "one of Ultima's great strengths", with 33 of FY12's biggest clients remaining on the list from the previous year. The report also outlines that the firm is growing its Technical Services Centre by expanding into space at its Reading HQ that was previously leased out. Warehousing facilities are also being upgraded.
"Over the 12 months there has been continued pressure on product margins throughout the industry. However, UItima has combatted these pressures... by offering a balanced and attractive product/service portfolio," adds the report. "Ultima's market offering has focused on those products and services which are associated with measurable performance improvements.
"A noteworthy trend has been the increasing promotion and adoption of multi-year contracts and one of the year's significant wins was a five-year contract with a customer which spanned a number of support offerings."
Telco also announced series of initiatives to drive digital growth in the UK
Nana Baffour opens up on Getronics' mammoth acquisition of Pomeroy
Analyst predicts SaaS will remain the dominant segment in the market as it grows 17 per cent in 2019