Kelway gunning to break £320m sales barrier
Bumper year for IT supplier
Kelway is forecasting sales of £320m for the current fiscal year at the end of next March as it edges closer to the half year point.
The London-based reseller's holding company closed off fiscal 2011 with revenues of £261m, up 46 per cent. That includes three months of sales, or £16.4m, from ISC, which it acquired for £15m last December, according to a Companies House report.
Operating profits for the twelve months were up more than 29 per cent to £8.5m – including £260,000 from the acquisition – and retained profits were £5.15m, up 25 per cent.
In a statement sent to The Register, Kelway chief exec Phil Doye said the financial year marked a coming of age for the business.
"Kelway has established itself as a credible alternative to existing providers in the UK IT services and solutions market," he said.
The firm said that the IT market remained "competitive" during fiscal 2011, and it sought to manage the risk of losing customers by developing sticky services and getting kit out on time.
It has the backing of venture capitalist Core Capital, which paid over £5m for a 25 per cent stake in the reseller five years ago.
The private equity house recently drummed up another round of funding to fuel the expansion of businesses in its portfolio, of which Kelway is by far the biggest.
Doye said it would reinvest profits into beefing up its managed services operation, including building a services centre in Peterborough, but reckoned it was "on track" to hit revenues of £320m by the end of its fiscal. ®