Glotel bucks Y2k effect


Glotel bucks Y2k effect

Glotel, the telecommunications and networking industries specialist agency, has announced its first year-end results since floating on the London Stock Exchange last May.

Boasting pre-tax profits of £6.2 million - a 77 per cent increase on last year's figures of £3.5 million - the company has also seen its sales figures jump some 30 per cent to £132.4 million.

The opening of three new branches in the US has aided overseas expansion plans, says the company, and shareholders are to receive a dividend of 3.5p per share for the period ended March 31, 2000.

The results would have been better, claims Glotel, if it had not been for the Y2K effect, whch caused a "sharp downturn" in business in the last quarter of 1999.

Despite being worst hit by the slowdown, Comms People, the company's main UK subsidiary, recorded a 19 per cent growth in sales, to £56.7 million. The business attributed margin pressure to "confusion in the market" and said it had become increasingly important to clearly define its specialisations in order to "differentiate ourselves from the commodity pressures within the general IT market".

Commenting on the results, chairman Les Clark, says, "This has been an excellent year for Glotel as a public company. We continue to benefit from the rapid growth of the telecoms sector worldwide and new technologies (such as third generation wireless licenses) will further increase demand."

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