VAR and managed services provider (MSP) Enables IT is taking "a more prudent view" of its business following a fiscal first half in which sales grew but losses more than doubled.
The Surrey-based firm, which is listed on the London Stock Exchange's AIM sub-market, saw revenue for the six months to 31 March increase by a third year on year to £3.6m. EBITDA loss before exceptional items stood at £373,000, compared with a profit of £118,000 in the prior year. The net bottom line showed a reverse of £818,000, compared with losses of £348,000 in FY13.
Chief executive Michael Walliss said: "We were disappointed to announce the sales pipeline setback. This represents a short-term issue and, accordingly, the board quickly identified and implemented a number of operational changes, the effect of which we expect to be a marginally positive EBITDA for the next six months."
In his CEO statement issued to the markets today, the Enables boss revealed that, following a review of the sales pipeline announced in its last trading statement, the firm has "taken a more prudent view in relation to conversion and deliverability".
"A reorganisation was instigated by the board as a consequence of this review, which included several staff changes and, ongoing, the group is benefiting from the related cost savings. Selected recruitment of sales personnel has commenced."
During H1 Enables completed the integration of two acquisitions: US outfit Know Technology, and London-based The Support Force Group. The company won new custom in markets such as legal services, today's announcement claims, and Walliss believes it is in a good position on both sides of the Atlantic to capitalise on the growth of cloud computing.
"The group continues to see significant opportunities in the fragmented marketplace as corporates look to cloud-based solutions," he said. "Growing acceptance of hosted solutions and a shift of expenditure from capex to opex mean the market trend continues to be positive.
"With its platform and product, Enables IT remains well placed to capture the opportunity, and has continued to make significant investment in the group's infrastructure, including both the UK and US datacentres to manage the growth potential."
In an interview with CRN, Wendy Mars says Cisco and its partners are no longer having to arm-twist customers on the need for digital transformation
Vendor's announcements include AI-powered Microsoft Office, a move away from password verification and an alliance with Adobe and SAP
Vendor claims hackers are hijacking machines to mine for cryptocurrency
Nearly half of SMBs are planning to invest in digital workflows to reduce their paper-based processes by 2025, according to Quocirca