Total Computer Networks latest to cock a snook at downturn
Double-digit sales jump, profit rises less dramatic
Total Computer Networks (TCN) booked another double-digit sales hike in calendar 2012 on the back of a surge in consolidation projects from mid-market customers.
The Northampton-based HP- and Microsoft-Gold accredited partner saw turnover bounce 22 per cent, year on year, to a little over £20m - during the worst recessionary period since the 1930s.
The firm has come a long way in the last half a decade. Back in 2008 sales stood at £6.2m.
Kieron O'Connor, sales director at TCN, said budgets were gradually being released by customers.
"With the recession customers pulled back on major infrastructure projects, it was almost neglected in the wilderness years but now they are getting the network ready for growth," he told The Channel. Most of the the big ticket wins centred on virtualisation, storage and consolidation, he said.
Gross profit came in at £2.49m, 9.5 per cent up on the £2.27m profits posted to Companies House a year earlier, but admin expenses shot up 27 per cent to £1.96m, due in part to a 25 per cent rise in staffing costs to £1.72m.
These overheads took a toll on operating profit, taking it down 27 per cent to £528,000 and net profits slid 28 per cent to £388,000.
TCN head honcho Aidan Groom, said there was an "influx" of newbies at the company, "predominantly across sales and back office functions".
It had a little over 40 staff at the end of the year, up from the previous year's average of 27. The total has now risen to 55 as TCN expects the market to continue improving.