Viglen cheers revenue rise

Profits halve but top line improves by 9.2 per cent

Public sector success: Viglen said OGC10 and OGC11 victories netted it 70 new customers

Viglen has registered a 9.2 per cent rise in annual sales as two bumper Buying Solutions wins bolstered its top line.

According a Companies House filing, the VAR and system builder generated revenue of £53.4m in the 12 months ended 30 September 2009, compared with £48.9m a year earlier.

Headcount fell slightly from 170 to 166 with director Lord Sugar among those to have moved on during the period.

Although operating profit more than halved to £998,000, Viglen stressed that its prior-year results benefited from the release of deferred income from prior-year sales. After tax, Viglen was left with a profit for the financial year of £748,000.

“On a like-for-like basis the company continues to show growth in both turnover and profitability,” the firm stated.

Viglen said it continues to focus its growth efforts on the public sector.

This was evident in two massive victories through public sector procurement arm Buying Solutions - OGC10 and OGC11 - which netted it 70 new customers.

Viglen estimated that OGC10, a two-year framework contract for the sole supply to 48 councils and NHS trusts, is worth an estimated £26m. Meanwhile, OGC11, which covers sole supply to 24 councils in the North of England, is worth an estimated £7.5m.

“With the bulk of the business likely to fall outside the typical seasonal summer peak of the education business the company has been able to absorb these contracts without a significant increase in its cost base,” stated the firm.