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Comms-care delivers 52% revenue growth

UK IT support services company sees strong demand from partners

Comms-care, a leading provider of outsourced IT support services, today announced that it has delivered strong results for the 2012/13 financial year (ended 31st March).

• Revenue over the year grew 52% to £15.6 million from £10.3 million bringing the CAGR over the last 3 years to more than 30%
• Growth in operating profit of 200% to £2.1m 
• Employees increased by 30% to guarantee delivery of exceptional customer service and ensure the provision of first-class technical support
• Board and management team strengthened with 5 new senior appointments
• Network of IT reseller partners grew by 30% to over 600 across the UK and Ireland
• Portfolio of IT support services was further expanded through the introduction of storage support and development of the Managed IT Services offering
• Successful rollout of its IT support services to new partners including ExCel London as part of a long-term partnership agreement with IT reseller AMP Networking

Commenting on the results, Comms-care Managing Director, Ben Davies stated:
“Comms-care has continued to make excellent progress this year delivering strong growth and investing to further expand our portfolio of IT support services. IT resellers are increasingly looking to outsource the provision of IT services, and with Comms-care’s ‘reseller only’ business model, coupled with our reputation for service excellence and technical expertise puts us in an excellent position to continue to grow rapidly in the years ahead.”

Demand from reseller partners drives growth
Comms-care provides IT support services across a wide variety of sectors and business types. Its services are provided as ‘white-label’ exclusively through channel partners, never selling directly to the end-user. This model allows partners to fully outsource IT support while maintaining their relationship with the end-user. The model has enabled Comms-care to become the leading trusted provider of IT services to IT resellers across the UK and Ireland.

During the year Comms-care’s network of channel partners expanded by 30% to over 600 and now equates to 30% of the top 100 UK value-added-resellers (“VARs”) of IT services and significantly 80% of the top ten. Through their partner acquisition trail Comms-care now provides IT support services on behalf of their channel partners to a wide range of private and public sector customers. 

During the year, Comms-care added AMP Networking, the Kent-based telecommunications and networking specialist, to its list of channel partners through a long-term partnership providing IT support services to the ExCel London, the premier events venue. As part of this partnership Comms-care will provide hardware and software support for the Cisco LAN infrastructure at ExCel London centre for the next five years.

The company’s relationships with existing channel partners have also strengthened with many increasing the number and variety of services outsourced to Comms-care driving a significant improvement in gross margins.  This has resulted in significant growth of their Tier 1 channel partners and in turn one of the main reasons why they are experiencing such dramatic growth.

Commenting on the future direction of the business, Comms-care Chairman, Peter Lloyd stated:  “Comms-care has earned a strong reputation in the IT channel market that is built on trust, service excellence, value, and long-term partnerships.  We are very aware that reputation is everything in a service based organisation. It is for this reason we have invested heavily in building an infrastructure that enables the business to accelerate that growth whilst retaining our integrity as the UK’s leading channel IT strategic services partner.”

Corporate development
Growing demand from channel partners to re-sell its IT services led Comms-care to increase overall headcount by 30% from 117 to 151, with the majority of new employees joining the customer services and technical support teams guaranteeing the highest possible standard of service provision. Comms-care now has more than 100 highly qualified field based engineers. The 3 year business strategy is to have 300 full time employees in place by March 2016.

The year also saw Comms-care continue to build its Board of Directors and strengthen its senior management team. In August 2012, Steve Holah joined Comms-care’s Board as Finance Director bringing over 20 years of Finance experience at ASDA, Equanet, part of Dixons Retail plc, and Focus Wickes.

In the financial year, Comms-care made five further additions to its senior management team adding significantly to the breadth and depth of skills within the team. The newly appointed members to the Management team includes Matt Long as Head of Technical Services, Joey Ghader as Sales Manager, Rachel Mander as Service Desk Manager, Pete Murphy as Sales Manager and Neil Bryers as HR Manager, report directly into the Comms-care Board. 

Lloyd added: “I put our success and reputation down to two key factors; our people, who relentlessly focus on the ever-changing needs of our channel partners’ and their customers and who are all prepared to go the extra mile. Secondly, the continuous investment in new processes, technologies, systems and training.”   

Investment for Growth
The IT services sector is an ever changing environment and Comms-care has continued to invest in its business to expand its portfolio of IT services and ensure the highest possible quality of technical support across a growing number of technology areas. This strategy has been set out in a three-year plan called ‘Investment for Growth’ aimed at maintaining and enhancing Comms-care’s position as market leader in the IT channel. As part of this strategy, the past year saw Comms-care add to its core services with the launch of storage support and the development of existing managed IT services to meet the demand from their strategic partners. The additional services is in response to the increased pressure experienced by resellers to ensure their customers’ IT systems are supported 24/7 to minimise the impact of downtime on businesses. The ‘Investment for Growth’ initiative will continue to run each year focussing on technology advancements and aligning the Comms-care service offering with the needs of channel partners and their end-user customers.

Awards and certifications
Comms-care was awarded Gold Partner status for the 6th successive year by Cisco following an independent third party audit of Comms-care’s processes and people. Receiving the Cisco Gold Partner status demonstrates an organisation’s ability to provide excellent service delivery, deliver continuous service and process improvement and bring value to customers wishing to work with Cisco products or services.  

During the past year Comms-care was also successfully re-certified by LRQA with the quality, services and security management certifications ISO 9001, ISO 20000 and ISO 27001.

Growing demand from the IT Channel’s top 100 VARs, which are increasingly looking to outsource IT support requirements, saw Comms-care’s revenue for the year increase 52% to £15.6 million (2012: £10.3 million). The increase was driven by the addition of new channel partners and also by the deepening of existing business relationships with resellers looking to outsource an ever increasing number of IT support services. Comms-care also has ambitious plans throughout the current financial year to grow the future order book value towards £15m.

Operating profit grew by 200% to £2.1m driven by economies of scale achieved as the business grows and as existing channel partners outsource more services to Comms-care.