Compel takes solutions to new heights
Compel has increased the "value-quotient" of its solutions as part of a strategy to do more high-margin business.
On publishing its preliminary results for the year ended 30 June 2006, chief executive Neville Davis said in his review of the year, that the group had proven its strategy of developing a stable of solutions businesses.
The strategy was "clear, consistent [and] strong", he said.
"We have continued to develop the sophistication and increase the value quotient and services content of the solutions we offer," he went on to explain.
This meant that the group had made an acquisition in the year. Allinity, a Peoplesoft consultancy, added £3m turnover to the group's Enterprise Solutions division, which did a total of £72.3m.
Rental Solutions, the computer hire part of the group, did £20.3m. The book-value of the rental equipment held by its customers, which was counted as nearly half of cost, lost nearly £2m following the acquisition of Hire IT in June 2005. The reduction was brought about by integrating the new company's equipment with its own hire fleet and making unspecified "efficiencies".
Total revenue had increased 17 per cent to £92.6m. Pre-tax profit increased 68 per cent to £2.3m.
Davis said the firm had outperformed all its "major competitors", won some new contracts and enjoyed an excellent reputation for hiring computers. The group was confident it would perform well next year as well and its solutions strategy "should lever above average growth and profit.®