VAR Proximity plans sales surge after 2013 income increase

Reseller ponders where to invest nigh £4m cash pile to realise growth intentions

VAR Proximity Communications is planning a year of strong top- and bottom-line growth after investing heavily in its technical clout last year.

Last year the Avaya partner grew net profit by more than a fifth to £1.26m, despite turnover remaining more or less flat on the £12.5m posted in the prior year.According to sales and marketing director Stuart Legg, a key focus during the year was bringing in new clients and expanding the company's annuity business.

A key success was bagging its biggest ever order, a £1.7m three-year services engagement with an energy firm which Legg claimed is Avaya's largest networking deal yet in Europe. This was followed last month by another seven-figure contract with a financial services firm.

"The Avaya data portfolio is in the best shape it has ever been. It really does compete with any other data players in the market," explained Legg. "In 2014 we will be looking for 20 per cent-plus growth in both revenue and profitability. In the first quarter [sales] will be 30 per cent ahead of last year, which gives us a great start."

The expansion plan has been laid out based on organic growth, but chief executive Darren Boyce claimed he will keep an eye on acquisition opportunities, hinting that virtualisation and hosting might be two areas of interest. He added that courting the private equity world is not on the agenda for the time being, and that he "would like us to remain entrepreneurial".

"We can grow to £20m or £30m and still do that. The best companies I know are large companies with pockets of entrepreneurialism," added Boyce.

"I get a letter a week [from potential private equity investors] - the City is awash with cash. We are in the fortunate position of having £3.8m in cash. If we want to make a leap into a new area, we can do that without giving away control of the business. We need to do what is best for the customer, not the shareholder. I am not going to say we will never look at it, but I think [private equity is not right] for where we are at the moment."