InTechnology flexes muscle
Firm claims it is in a 'strong position' for 2005
Storage, security and managed services specialist InTechnology has claimed it is in a strong position for 2005, despite issuing a warning that operating profits for the year to March 2005 will be below expectations.
In a trading update to the City last week, the firm, which acquired rival distributor Allasso 18 months ago, said revenues and trading volumes in its UK specialist distribution business had performed "in line with expectations" but that it had "witnessed margin pressure" in its third quarter.
Charles Cameron, chief executive of InTechnology, told CRN: "We have experienced intense gross margin pressure in the latter part of 2004 in distribution. If it continues we will have to report lower profit figures."
However, Cameron added that business was solid. "We are not reducing our business; in fact, business is growing organically. Although it is not growing as much as the City expected, we are still profitable," he said.
Cameron claimed there is no shortage of opportunity for the right companies. "I see increasing demand for the sort of technology we offer. Our specialist and managed services business goes from strength to strength," he said.
Cameron would not rule out further acquisitions for InTechnology. "We are extremely happy with Allasso. The business has been fully integrated and is performing in line with our expectations. Obviously, we will continue to look at opportunities to further the business," he said.
Phil Codling, senior analyst at Ovum Holway, said: "InTechnology is well positioned to benefit from growth in storage volumes, and the growing burden of regulatory compliance. The group is already strong."