Kavanagh sees green shoots of recovery
Datacentre VAR predicts 25 per cent sales boom
Campbell: Manufacturing and banking deals are coming back
VAR Kavanagh is predicting a revenue surge as the large datacentre projects it specialises in finally start to re-emerge.
The HP partner endured a rough ride last year as its core market ground to a halt. Its fiscal 2009 sales fell 15 per cent to £24.9m and losses hit £1.6m.
However, managing director Rob Campbell said that Kavanagh’s last quarter, ending 30 April 2010, had “probably been the strongest for three years”.
Based on business already booked, he said the VAR expects fiscal 2011 sales to grow by 25 to 30 per cent.
"Manufacturing and banking deals are coming back,” he said. “These are projects where we have been talking to the customer for some time.”
Campbell also said Kavanagh, which competes with the likes of SCC, Computacenter, 2e2 and Logicalis, is well placed to capitalise on any uptick because it has maintained its project and technical skills base.
Campbell said Kavanagh has secured “a firm commitment” from a key distributor to provide a sizable credit facility on an ongoing basis. The firm’s bank has recently indicated its willingness to renew overdraft terms.