Comms VAR Qubic Ltd hits the wall

Mitel and ProCurve partner is liquidated despite impressive growth last year

Comms reseller Qubic Ltd has hit the wall, despite returning to profitability and growing sales by a quarter last year.

The Barnet-based firm has previously held top-level partner accreditations with HP ProCurve and Mitel. It also worked with vendors including Cisco, Avaya, Griffin, Thus and O2. A company representative told CRN the decision had been taken to liquidate the business. They declined to offer further comment. A creditors meeting will be held in London on 25 February.

Published in October last year, Qubic Ltd's sales for the 12 months to 31 March 2009 rose 25 per cent to £2.45m. Net profit stood at £151,435, compared to a £135,902 loss in 2008.

The director's report claims that the company was striving to move its business model towards a focus on medium to long-term network services agreements. Revenue from such deals more than tripled in 2009 to £774,740.

"As planned, we have had to bear the sales and marketing costs to secure this recurring revenue upfront," said the report.

It went on to claim his firm was enjoying "strong growth in the public sector " and that increased public and private maintenance contracts would "help provide revenue stability for the medium to longer term".

But the report reveals Qubic had been working hard to rein in costs, resulting in redundancies and an office downsizing.

"Actions have been taken to reduce cost and streamline the company," the report said.

"Staff costs have been reduced through not replacing leavers and some redundancies. Efficiency savings have been sought and a review of supplier costs has been undertaken. The company is employing flexible working practices which will enable it to move to smaller, lower-cost premises."