Stone cites services as central to sales spike

System builder posts double-digit revenue and profit hike as lending levels lessen and cash pile increases in solid annual numbers

Stone Group has hailed the addition of new services revenue streams as a key driver for the double-digit sales and profit growth it posted in 2012.

For the 12 months to the end of December last year, the public sector IT specialist grew turnover 12.7 per cent year on year to £73.7m. Growth in EBITDA before exceptional items was marginally behind but Stone still saw its bottom line increase by 11.1 per cent to £3m.

Other 2012 financial highlights cited by the Staffordshire system builder include a £4.6m inflow of cash from operations, compared with an outflow of £200,000 in the prior year. Bank loans were also reduced £6.9m to £5.8m during the year, while an overdraft of £1m was turned into a cash balance of £1.1m.

During the year, the Stone Professional Services unit was launched and the company also expanded its capabilities in the life cycle management sector. Stone ultimately intends to double the capacity of its repairs, recycling and refurbishment operation.

Chief executive Simon Harbridge (pictured) said: "Our strong and growing core hardware business continues to deliver industry-leading service levels and therefore best-value total cost of ownership, consolidating our position as the leading UK manufacturer and supplier of choice to the UK public sector.

"We are also growing our professional and life cycle management services alongside ensuring a balanced and sustainable business for the long term. The signs for 2013 are extremely positive, with the business achieving its largest ever Q1 number in our 22-year history."