Compel posts positive 2006 results

Corportate VAR bullish for 2007 after profit rockets by 68 per cent

Corporate VAR Compel has hailed its 2006 financial year a success after posting results that beat market expectations.

Turnover increased by 17 per cent for the year ended 30 June 2006 to £92.6m compared to £79m in 2005. Pre-tax profit leapt by 68 per cent to £2.3m compared to £1.3m last year.

The firm said it is “well placed for further success this year and beyond”.

Neville Davis, chief executive of Compel said in a statement: “I am pleased to report on a very good result for Compel. Organically the business performed well with good growth and increases in market share. We complemented this with a strong contribution from Allinity which we acquired in January 2006.

“Our markets are stable, showing growth: we have grown faster than tese markets and are confident that we can continue to do so. We have a very clear strategy for the profitable growth of Compel, and with our strong market positions, our excellent reputation and our outstanding people we are confident of further success in both the short and long term,” he said.

Kate Hanaghan, analyst at Ovum said it was likely the firm would be making further acquisitions.
“Progress has been made organically and inorganically, and we would expect this theme to continue. In other words, more acquisitions – in particular in the business solutions division – are likely, but so too is growth within the existing business.

“The indications following the Allinity acquisition are positive. While it has benefited from a pick-up in the market for PeopleSoft consulting, Compel has also started to address cross-sell opportunities with other parts of its existing businesses. We think this represents a good opportunity and are confident Compel can do a good job of this.”