Feeds

Avisen reports losses 3 times higher than sales

Who says there's no biz innovation in old Blighty?

Boost IT visibility and business value

Reseller minnow Avison managed to pull an unusual set of results out of the bag today, reporting operating losses that are nearly three times higher than its sales.

The LSE-listed firm, which flogged its IBM Cognos business Inca Software to Logicalis earlier this year for £7.3m in cash, filed losses of £7.8m on sales of £2.6m from continuing operations for the year ended 31 January 2011.

Red ink on the accounts was caused by a £4.5m one-time impairment charge on the April acquisition of investment shell Xploite and its subsidiary Storage Fusion – a SaaS analysts firm – and £1.5m in other strategic and one-off costs.

EBITDA loss for the year was £100,000, which interim non-exec chairman Mark Battles blamed on the time spent piloting Acorn Systems profitability software, but he said the process resulted in a three-year "global cost to serve" contract with Unilever.

"This contract will generate significant revenues for Avisen over the next three years from the provision of a perpetual licence, managed services and ongoing consultancy," he said.

The March sale of Inca was "influenced by the constant margin pressure the division faced and our concerns surrounding our ability to scale the business and be up to date with the latest SaaS technologies without further significant investment".

Battles said cash received from the sale would be used to fund future growth in its two main trading divisions, Acorn Software reselling and Storage Fusion.

He said the business "needs to add more scale" to compete in the market more effectively and the board had "identified several acquisition opportunities which it is actively pursuing". ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.