E-commerce boosts Kewill profits

Pre-tax profit helped by vendor's acquisition of internet connectivity specialist Electric Mail. David Fisher reports.

Kewill Systems is reaping the benefits of electronic commerce afterity specialist Electric Mail. David Fisher reports. it revealed a jump in pre-tax profits of almost 14 per cent.

In its preliminary results, Kewill's profit before tax was up 13.3 per cent to #8.4 million from #6.8 million last time - without accounting standards taken into account.

Revenue was #45.1 million, 27 per cent of which came from e-commerce.

Richard Broad, finance director at Kewill, told PC Dealer that enterprise resource planning, the traditional core of the business, still accounted for most of revenue, but the fastest growing area was e-commerce.

'We are at the early stages, but there is growth for years ahead. I see e-commerce in its infancy.'

In Germany, sales were down by #3 million and profits down #1.1 million.

But analysts said the boom in e-commerce should be reflected in future European results.

Most e-commerce work was within the UK, with Germany seen as a ripe market for expansion next year.

Broad said the e-commerce division's sales were expected to recur and expand. The division had been strengthened by the acquisition of internet connectivity company ElectricMail.

Success was due to specialised focus linking large numbers of suppliers to trading partners, including Asda, Tesco, Sainsbury and Marks & Spencer, he said.

Broad said there was no intention to expand e-commerce to the home market, with business to business connections providing at least 10 times the volume.

Work with Sainsbury would expand e-commerce to an internet system to include small suppliers currently put off by set-up costs.