Matrix Communication Group is reaping the benefits of its aggressive acquisition strategy with its latest financial results showing sales increased by 766 per cent.
The firm, which bought five companies in less than 12 months, reported operating profit of £1.2m for the year ended 31 October 2004 compared with a loss of £400,000 in 2003. Sales in 2004 were £11.1m.
Matrix has also reorganised into two separate businesses: Integration, which encompasses the reseller arm, and Partner Sales, its distribution arm.
Ron Sandison, managing director of Partner Sales, told CRN that the financial targets for the next three years are to make the group a £200m company.
"After buying Network Partners in November, which had sales of £11m, and with the potential acquisition of equIP, we want to reach at least £40m to £50m in sales for my division this year," he said.
Sandison said this will be achieved through both organic growth and more acquisitions. "A large element of the business is in the telco and telephony space, and we are looking at the feasibility of acquiring ISPs or small telcos," he said.
Ian Smith, chief executive of Matrix, said: "There remain a number of products and service offerings the group would like to make available to its customers. These include data storage and infrastructure software solutions."
Bob Tarzey, service director at analyst firm Quocirca, said Matrix is looking to diversify its range.
"Firms in the channel now have to cover the requirements of their target customers," he said. "Acquiring profitable companies that add to the top and bottom line and add value in terms of product range is a strategy that will succeed."
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