Feeds

Avisen reports losses 3 times higher than sales

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

Internet Security Threat Report 2014

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". ®

Internet Security Threat Report 2014

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.