European Electronique profits rocket despite 'challenging' schools business

Sales slightly down but profits for the year more than double

European Electronique saw its overall profits soar in its latest financial year, but it said the under-18 education market is "challenging".

In accounts published recently with Companies House, the reseller said in the 12 months ending 31 March this year, profits soared 110 per cent annually to £301,846, on sales which fell four per cent to £50.1m over the same period.

The company lamented a lack of technology focus in the schools space.

"A large proportion of EE's turnover was derived from the education sector," the accounts said. "The under-18 education business continued to be challenging, with school budgets cut and a lack of focus on technology. However, higher education and further education revenues grew significantly and the company made further investments in strengthening the team focused on this sector. Furthermore, EE's position in this sector was further reinforced by its appointment to the JISC framework with HP and Fortinet."

It added that overall, it had been a good year.

"In the year ended March 2016 EE continued to strengthen its position as a solution provider and systems integrator, with greater focus on providing contracts which encompassed infrastructure services and technical resources. The investment made in previous years in the Freedom Cloud solution continued to show a good return, with more contracts being secured throughout the year. Going forward the company aims to continue promoting revenue-based solutions and associated service. This will result in predictable annual revenue and higher margins.

"The company pipeline in 2016-17 remains in line with the ongoing strategy to play to our strengths in the education market... while investing into other market sectors through our presence on the public sector's most prestigious frameworks."