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Accumuli sales up after integration hiccup

Alex Scroxton

Despite encountering a small accounting anomaly on the balance sheet of its most recent acquisition, Boxing Orange, buy-and-build managed security services firm Accumuli has been reflecting on a "period of considerable progress" after unveiling half-yearly results today.

Accumuli picked up security specialist Boxing Orange last spring for £2.73m in cash and £2.75m in ordinary shares, but found mistakes that had resulted in the understatement of deferred income and accruals of £500,000.

As a result Accumuli said, it has negotiated the basis of its deferred consideration payable down by £800,000. This consideration is based on the performance of Boxing Orange's DDoS sub, Webscreen.

Accumuli chairman Nick Kingsbury said the problems were "not of [Boxing Orange's] making" and thanked the vendors for helping address the matter.

For the six months to the end of September, Accumuli posted sales of £5.5m, and EBITDA of £1m, both well up on the prior period. Pre-tax profit at the firm rose to £200,000, reversing a loss of £700,000 in the seven months to 31 March.

It also reported on the integration of its other acquisitions, Tuscany Networks and Fujin, which along with Boxing Orange have now been rebranded as Accumuli Security. Webscreen remains as a standalone unit.

More importantly, in its report to the City this morning the firm said it would "continue to assess" other acquisition targets.

"In particular, we look for businesses with strong, recurring managed security service revenues, owned IP that has the potential for further development, and a good customer base," said Kingsbury.

He added that the company had taken the decision not to replace MD Will Palmer, who stepped aside at the end of September, and would instead rely on its technical, sales and finance directors to run the business day-to-day, with strategic input from executive director and key investor Ian Smith, who bought into the business in December 2009.


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