Cancom reports best ever quarter following OCSL purchase

Preliminary Q3 figures show sales growth of 30 per cent

Cancom has logged its highest ever quarterly sales figures after revenue hit €355.2m (£316.5m) in Q3.

The Munich-based provider logged 30.1 per cent revenue growth compared with the same quarter last year, according to preliminary results. Cancom claims it grew revenues organically by 22.8 per cent.

Preliminary figures show that EBITDA similarly increased by 23.6 per cent to €26.7m for the quarter, with 14.8 per cent stemming from organic growth.

CEO Thomas Volk claims that the firm's EBITDA growth would have exceeded 35 per cent if it weren't for a €2m investment in bolstering its cloud business during the quarter.

"The third quarter continues Cancom's success story," he said. "The demand for our services is constantly increasing and our success confirms our chosen path of transformation and additional investments in the cloud business. Although we again made additional investments of more than €2m in the quarter, our EBITDA increased by 23.6 per cent to €26.7m. Without these measures, the EBITDA increase would be over 35 per cent and thus higher than revenue growth."

Cancom's revenues and profits for the quarter were surely assisted by its acquisition of £85m-turnover UK firm OCSL in August. The M&A move created a "UK hub" for the German VAR. The company also bought out another UK firm, Cisco partner Ocean Intelligent Communications, earlier this year.

The Munich-based firm's long-standing CEO Klaus Weinmann stepped down in the weeks after it acquired OCSL, to be replaced by Volk.

Cancom is gunning for €2bn in revenues over the next three to five years and is looking to reach profit margins of at least 10 per cent over the same time frame as it shifts towards a managed services model.

In 2017, the firm grew its top line by 14 per cent as sales surpassed €1bn, while EBITDA grew by 15.9 per cent, reaching €84.5m.