Channel successes defy grim forecasts
Industry players post improved results
Despite warnings of a sluggish 2005, three major industry players have proved there is still buoyancy in channel waters.
Corporate VARs Compel and Morse, and broadline distributor Northamber, all posted an increase in both turnover and profit with their interim financial results.
Northamber posted a whopping 106 per cent rise in pretax profit to £1.36m in its interim results for the six months ended 31 December. The previous year it made a £659,000 profit. Turnover for the six months increased by 8.3 per cent to £124.5m, compared with £114.9m in 2003.
Northamber chairman David Phillips said in a statement: "We continued to maintain primary positions in the UK against a background of the ongoing and competitive nature of this sector."
Phillips added that he remains "confident in the outcome" for the full-year results, "subject to the economy as a whole".
Compel Group, which acquired Oracle specialist Sysao last year, saw its turnover grow by 42 per cent to £41.5m in the six months ended 31 December, compared with £29.3m in 2003. Pretax profit grew to £1.1m, compared with £0.15m the previous year.
Paul Berry, group sales and marketing director at Compel, told CRN that the firm is planning "more of the same for 2005".
He added: "We intend to build on our current capabilities. We want to drive more value to clients. Over the past 18 months, firms have started to release projects, and we are picking up more business."
Berry also revealed that the firm "would not rule out further acquisitions" as well as concentrating on organic growth.
Finally, Morse, which acquired SAP consultancy Diagonal last year, revealed a 16 per cent increase in turnover for the six months ended 31 December. Turnover stood at £216.6m for the period, compared with £187.1m in 2003, with £18m of that coming from Diagonal. Profit before goodwill amortisation stood at £4.8m, compared with £4.1m the previous year.
Duncan McIntyre, chief executive of Morse, said: "We are confident that given current trading conditions, and with our portfolio of solutions to build upon, the Group can look forward to accelerated development in the second half of this year."