Serial gobbler Alternative Networks has indicated it will be back on the hunt for more acquisitions from next spring.
The London-listed comms VAR has taken a breather from the M&A game after breaking the bank with its double swoop on managed services specialists ControlCircle and Intercept IT in January.
But Alternative Networks indicated it is nearly ready to rejoin the trail as its annual results revealed a revenue spike, recovering cash reserves and a strong balance sheet.
For its fiscal 2014 to 30 September, revenues bounced by 20 per cent to £137.8m, with net debt falling to £29.3m, down from £40.8m at the time of the acquisitions.
ControlCircle and Intercept IT, which it bought for a combined £51.8m, contributed £16.9m and £7m, respectively, to the top line, meaning organic growth came in at one per cent. Pre-tax profits fell 17 per cent to £10.4m.
The firm said its strong balance sheet and ability to generate cash have allowed it to continue to "monitor the market proactively for further ‘right-fit' acquisitions", with activities in this area set to be stepped up from its fiscal second half beginning in April.
"Acquisitions are being targeted to complement the existing products and to further expand our capabilities and product set in the Advanced Solutions area, with a focus on managed and hosted services," it said.
Chief executive Edward Spurrier said 2014 had been "one of the most important and significant years in Alternative's history".
"I am very pleased to report a strong performance by the group throughout the year. We have achieved organic growth in a competitive market and can credibly call ourselves a market leader," he said.
The firm also reiterated its intention to progress towards 15 per cent annual growth, with no less than 10 per cent per annum.
The Advanced Solutions division in which ControlCircle and Intercept IT now sit saw revenues rise by 65 per cent to £62.7m. Alternative Networks said both acquired firms had performed ahead of expectations, with Intercept IT winning a major global deal with a so-called "Magic Circle" during the period.
Revenues at its Mobile division rose four per cent to £43.8m, while fixed-line revenues fell back nine per cent to £34.4m.
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