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Comms-care enjoys services growth

The contribution of managed and professional services has helped Comms-care's bottom line

The channel is in transition towards a business model that derices the bulk of revenue from services and those that have made the strategic decisions to change the balance of their operations are starting to see the benefits.

It is becoming more common the get financial results from the channel that now provide some evidence of how the decision to increase services is providing the growth that should secure future prosperity.

Comms-care has been tranisitioning the business to increase the managed and professional services it can offer customers and it has been able to boast of increased revenues and profits for oiyts 2014/15 fiscal year, which ended 31 March.

The firm reported a 33% increase in revenue from £19.6m to £26.1m, with 44% of that coming from services, and operating profits also climbed by 13% to £3.4m. During the 12 months the firm also took its headcount over 200 and it also increased its partner network by 14% to more than 800 across the UK and Ireland.

A break down of the revenues included £9m from professional services, £2.5m from managed services and £14.6m from maintenance services. To make sure that resellers can take the services out to market Comms-care also stepped up the education it provides partners to make sure they could pitch it to customers.

During the fiscal year the outsourced IT specialist acquired professional services firm Platform as it looked to extend its position in the market and the results noted the contribution the acquisition had made.

“We have taken decisive steps over the past 12 months to respond to big changes in the technology industry, which saw our channel partners requiring access to a broader range of professional and managed services to sell on to their customers," said Comms-care managing director Ben Davies.

"Meeting these new demands for professional and managed services will help us deliver on our strategic plan to be the leading channel only IT services provider," he added.

Comms-care chairman, Peter Lloyd said that its strategy to extend services was paying off: “We are particularly pleased with the seamless integration of the Platform Consultancy team into the company, which has enabled us to develop a broader range of high value professional services to offer our partners."

"Following the successful acquisition of Platform Consulting, we will continue to invest in the skills and capabilities required to grow our professional services and managed services business, which already equate to nearly half of our revenues," he added.

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