Half year results for year ending 31 March 2013

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ANS Group – specialists in data centres, managed services, compute, storage and network infrastructures – has reported a 13% increase in sales to £20.3m for the six months to 30 September 2012.

The company, which provides large-scale IT infrastructures and cloud-based services to over 600 customers across private and public sectors, also achieved an 18% rise in net operating profit from £1.1m to £1.3m during the period.
Financial Highlights:

Turnover increased by 13% to £20.3m (2011: £17.9m)
Managed Services Gross Profit contribution increased by 31%
Gross Profit increased by 11% to £4.9m (2011: £4.4m)
Net Operating Profit increased by 18% to £1.3m (2011: £1.1m)
EBITDA increased by 17% to £1.4m (2011: £1.2m)
Cash increased by 39% to £4.6m (2011: £3.3m)

Operational Highlights

Building on the success of the award-winning i3 solution, ANS has implemented an increasing number of seamless transitions to the i3 in the cloud solution, selling and delivering over 50% of all i3 solutions in the UK, making the company by far the market leader

Significant investment and continued development in managed services has resulted in increased levels of customer adoption

Growth, development and investment in data centres, network and infrastructure are delivering substantial business benefitsSignificant business wins delivering revenue, including DeVere Group, Salford City Council and Howard Jackson

ANS has a 96% customer retention rate, achieved by consistently high customer service levels and successfully delivered solutions

As a result of investment, primarily in staff and managed services infrastructure, ANS Group’s operating costs have increased by 12% from £3.3m at half year 2011/12 to £3.7m at half year 2012/13.

Scott Fletcher – Chairman and Founder of ANS Group commented:
“These positive results have been achieved following significant investment in growing our team to over 150 people, including an increase in high quality expertise, specifically for the on-going development our managed services solutions. We continue to focus on delivering the best customer service in our industry and are proud to have a 96% customer retention rate, reflecting the tremendous commitment from all the ANS staff.

“Our future strategy is based on securing recurring long-term recurring revenue from our managed services and increasing the take-up our i3 and cloud-based solutions.”

Paul Sweeney – MD of ANS Group commented:
“This first half of the year has been a very solid start and we are continuing to see an increased demand for our i3 in the cloud solution. We have successfully delivered a number of large scale, complex and multi-technology infrastructures, both on time and on budget. Adding to our established customer base of over 600, these new customers including DeVere Group, are already generating significant revenues from infrastructure delivery and on-going management. In addition, we are seeing a very impressive response to our National Cloud shared cloud infrastructure offering, developed specifically for small to medium sized businesses and powered by ANS’ i3 solution. National Cloud is provided as a service, and is a fully managed, on-demand infrastructure on a simple and flexible pricing model. In the past, a small company would never have been able to afford this class of technology, but we have built our own infrastructure on the cloud, so now we can sell this for a monthly fee via our National Cloud offering to small and medium-sized businesses. This represents a new customer market for ANS and one that we are confident in achieving a leading position and generating significant business and revenues from.

“We are very excited about our data centres and network. In addition to our existing two data centres we have a planned investment of £8m over the next three years in The Sharp Project, as our state-of-the-art 800 rack data centre facility, which will house our i3 solution and our hosted National Cloud infrastructure. Based on our data centre at The Sharp Project going live in spring 2013 and the high degree of interest already, we are confident that we will see business and revenue generated from this data centre in the final quarter of this financial year.”

ANS Group continues to have a strong balance sheet and financial stability, with cash holdings increasing by 39% to £4.6m (2011: £3.3m), which ANS sees as a key selection criteria for new customers.

Chris Malthouse – FD of ANS Group commented:
“We are finding that financial stability is an important selection factor for organisations when sourcing and making a final decision on infrastructure, cloud and data centre companies. Our consistent financial performance and strength has also enabled us to make the required investments over this half year period, which we are confident will deliver significant return in the second half of the year and beyond.”