Flush Alternative Networks on acquisition hunt

Comms reseller 'actively considering' multiple opportunities with a view to bolstering managed services business

Comms VAR Alternative Networks is running the rule over multiple acquisition targets as it looks to bolster its Advanced Solutions division.

The AIM-listed outfit, which bought rival Mitel reseller Scalable Networks in 2010, claimed it is well placed to make further acquisitions as it closed the books on a "successful" fiscal 2013.

For the 12 months to 30 September, Alternative Networks posted a two per cent decline in net profit to £12.5m on flat revenue of £114m.

Boasting a net cash position of £17.2m at year end, the VAR – which focuses on customers with 80 to 1,000 employees – said "several opportunities remain under active consideration and we remain well placed to pursue them".

"Acquisitions are being targeted to complement the existing products and expand our capabilities and product set in the Advanced Solutions area, with a focus on managed and hosted services," said Alternative Networks chief executive Edward Spurrier.

Its Advanced Solutions arm, which added Palo Alto and Aruba to its vendor roster in 2013 and also works with Juniper, Mitel and Avaya, saw revenue rise three per cent year on year to £37.9m, with revenue in the second half zooming up 13 per cent.

Its Mobile division, which was busy punting O2 and Vodafone's new 4G propositions this year, saw revenue rise four per cent to £42m.

The firm's Fixed Line services arm saw revenue tumble nine per cent to £34.4m against a declining marketplace.

Spurrier said Alternative Networks had achieved flat results despite an investment in sales, technical and marketing staff during the year, stressing that second-half sales were actually up three per cent.

"I am pleased with progress through the year," Spurrier said. "We are growing, winning larger customers with a broader portfolio of products and services, greater technical skills and we have a stronger service proposition as a result of investment in the year."