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Outsourcing boosts Workplace margins

Profits up 30 per cent

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Network integrator Workplace Technologies increased sales by 30 per cent, to £40 million, and profits by 33 per cent to £1.3 million for the six months to 30 June. A hike in gross margin from 21.7 per cent to 23.5 per cent fuelled the impressive results as it focused on high-margin network support business. Workplace Technologies said that the results - the first since the company floated - were boosted by a number of large network support contracts, and these would increase as more and more customers contracted out support of their networks. MD Andrew Vaughan said that there was considerable scope for Workplace Technologies to increase its support services, as networks become more complex, carrying voice, fax and data leading more companies to outsource. "The higher margin business has continued to grow," he said. Network integration margins had also increased slightly, said the company. Workplace Technologies has more than 100 outsourcing contracts to support customer networks, including Daewoo Cars and Dixons Stores Group.

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