Kelway looks for acquisitons after posting interim results


Kelway looks for acquisitons after posting interim results

Paul Kunert

Kelway is hunting for product and services-based reseller targets in the current downturn and chief executive Phil Doye has predicted that it will have notched up another acquisition by the end of the current fiscal year in March.

The bullish talk from the London-based reseller came as Kelway unveiled six month results from April to September that showed a 35% surge in revenues to £55m and an 80% rise in profits, though it declined to provide the bottom line figure.

In the summer of 2007 Kelway bought Elcom out of administration in a pre-pack deal and Doye said this combined with organic growth had given the company greater economies of scale to compete with corporate dealers.

"The scale has allowed us to compete more favorably against the likes of Computacenter, SCC and Insight and we are growing our solutions business around storage, blades and virtualisation," he told Microscope

Resellers continue to price their businesses relatively highly in the current market but that could be set to change if the bitter winds of recession continue to blow through the channel.

Doye said, "I absolutely believe we will acquire other before the end of our current financial year, we are looking at both product centric and services based resellers."

In the fiscal year to 31 March 2008, Kelway achieved revenues of £90m and pre-tax profits of £2.9m.

At the same time, Kelway has announced the appointment of Richard Barfield as non-executive chairman, who was the CEO at IT training group Spring from 2002 to 2006.

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