Having concluded an overhaul of the senior management and sales force, a full review of operations and strategy, and an investigation into accounting and contracting improprieties, Danwood's chief executive has laid out plans to double the firm's share of the UK print market.
The Lincoln-based VAR recently filed accounts for the year to 30 September 2012, which show revenue up 12.8 per cent year on year to £208.4m, with EBITDA before impairments growing 12.5 per cent to £14.4m. The publication of the prior year's accounts brought the revelation that numbers dating back six years were to be restated in light of "accounting weaknesses".
The investigation into this matter concluded earlier this year and the company's leasing and finance partners have now reiterated their full support for the VAR, according to Stephen Francis, who was appointed as chief executive in November.
"Prior to my arrival there was a philosophy that we needed to draw some bridges up; but as we have gone through this period of introspection and investigation, our approach has been to be completely transparent," he said. "Whatever there was to discover, the journey has been a joint one [with us and our partners]."
Francis outlined that he had brought in to instil greater professionalism and efficiency in a company that still operated in the manner of a local business, despite having grown to be the UK's largest independent print and copy provider over its 40-year history. A "substantial" reduction in sales headcount has followed, as well as a restructure which sees sales operations split into three divisions focused on the enterprise, SMB and public sector markets.
"My mandate from the board when I arrived was to professionalise the company," he said. "The systems for the business were not fit for purpose; the management systems were a legacy of the cottage-industry history of the company."
Francis outlined that, with the restructuring of the company complete, one of his goals is to nigh-on double Danwood's share of the UK print, copy and document management channel, which he pegged at between seven and nine per cent.
Look out on ChannelWeb in coming days and in an upcoming issue of CRN for a full write-up of our chat with the Danwood leader, in which he opened up on the reseller's turbulent recent history, as well as acquisition plans, business strategy and sales ethics.
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