By Paul Kunert
21 November 2008
Business Systems Group (BSG) has seen a healthy rise in top and bottom line growth in first half results for the year as all units within the London-based reseller come managed services provider climbed.
Operating profits for the six months to 30 September soared from £225,000 in the same period a year earlier to £544,000 and revenues went up 14% to £17.97m.
“The Group has performed strongly in the first six months of this year. It is particularly pleasing to report that contractual revenues have reached a new record and that profit margins in this business are improving,” BSG said.
The company said it has seen 14% growth in hardware sales to £10.69m, while the managed services and solutions businesses posted increases of 12% and 18% respectively to £5.48m and £1.52m. Annual contractual revenues grew 4.7% to £8.8m.
The board said it expects the commercial trends to continue in the remainder of its financial year with 50% share of gross profits coming from the managed service division for the first time.
The growth in annuity-based business would help insulate BSG from the slowdown in the demand for IT as the macro economic climate continues to worsen.
