Year End Results 2012

Posted:

Further development of the i3 in the cloud offering key to business growth, 60% increase in Turnover and 61% increase in Gross Profits. ANS Group, data centre specialists in cloud, on-premise infrastructure solutions and the provision of managed services, continue with an impressive eighth consecutive year of growth.

Financial Highlights:
Turnover increased by 60% to £47m (2011: £29.4m)
Gross Profit increased by 61% to £10.6m (2011: £6.6m)
EBITDA pre-exceptional and one off items more than doubled to £3.6m (2011: £1.6m)
Cash increased by 128% to £8.5m (2011: £3.7m)
Total Contracted Revenues increased by 138% to £19m (2011: £8m)

Operational Highlights:
Building on the success of the award-winning i3 solution, ANS have implemented an increasing number of seamless transitions to the i3 in the cloud solution
ANS’ FlexPod architecture, Infrastructure 3.0, accounts for over 50% of all FlexPod solution deliveries in the UK
Significant development, continued investment of £1m across the year and customer adoption of Managed Services are key factors in the growth in contracted revenue
Continued growth and development in data centre network and infrastructure are delivering substantial business benefits
Significant business wins including DeVere Group, Salford City Council and Howard Jackson
ANS have an enviable 96% customer retention rate, achieved by consistently high customer service levels and successfully delivered solutions

Financial Review:
The Board is very pleased to present another excellent set of financial results for the year to March 31st 2012.

Scott Fletcher ANS founder and chairman commented on the results;

“We are delighted to produce another year of growth with excellent results, together with being in an enviable financially solid position, in what continues to be a tough economic climate. We attribute our success and continued year on year growth to a number of factors. As a result of the investment over recent years in our people we now have a team approaching 150, with every one of them demonstrating a tremendous commitment and conviction to succeed and build on the previous year’s successful growth. In addition we have been delighted with the growth, development, response and customer adoption of our market-leading Infrastructure i3 solution, which we are now increasingly implementing as a cloud based solution. This industry-leading infrastructure is a fully validated FlexPod design, using Cisco UCS, Nexus switches, NetApp storage and VMware virtualisation. i3 in the cloud, together with our growth in Managed Services, places ANS in an ideal position to continue our growth plans.”

ANS have achieved an impressive increase in turnover of 60% from £29.4m in 2011 to £47m in 2012, and has also seen an equally impressive increase in Gross Profit
of 61% from £6.6m in 2011 to £10.6m in 2012.

EBITDA pre-exceptional items and one off items has increased by 115% to £3.6m. These items are related to share buybacks, loan write offs and other non-trading costs.
The operating costs grew by 60% to £7.9m, with staff costs as the largest single item, accounting for 95% of the total increase. The average monthly staff numbers increased by 40% during the year, and the number of employees on the payroll at the end of March had risen to approaching 150.

Chris Malthouse FD of ANS Group stated: “In a tough economic climate, supplier security is key and customers need to have confidence in the financial stability of their infrastructure and cloud providers. The strength of the ANS Group balance sheet can be seen in our increase of cash of £4.8m to hold a closing cash balance of £8.5m with no debt.
ANS’ closing cash balance has shown remarkable growth from £3.7m to £8.5m over the last year, resulting in a 128% increase over the previous year. Excellent cash management and a rapidly-growing business that is generating cash have been key to this impressive achievement. This will also enable ANS to make further investments in the business.”

Operational Review:

During the financial year ANS have seen a number of key developments, achievements and successes, including key business wins and the growth and development of the team.
Scott Fletcher – ANS chairman, commented; “I would like to take this opportunity to thank all of the staff for their unwavering commitment and their contribution to making the year another great success. Despite the negative economic background our teams have continued to deliver the most technically efficient, secure, cost beneficial and value for money solutions to our customers. Great pride has been taken in the design of our award winning i3 solution encompassing industry leading partners, Cisco, NetApp, VMware and Microsoft.”

ANS’ FlexPod architecture, Infrastructure 3.0, was the first FlexPod solution to be sold in the UK. According to NetApp’s market analysis ANS has sold over 50% of all FlexPod solutions in the UK.

ANS have been continually developing their cloud and data centre solutions over the last 12 months as an alternative to an on-premise ANS i3 solution.

Paul Sweeney – MD of ANS Group commented; “Through these key developments we are now able to offer fully secure Infrastructure as a Service (IaaS) and Desktop as a Service (DaaS) Cloud based service offerings, as well as complimentary new service offerings such as Backup as a Service (BaaS) and Disaster Recovery as a Service (DRaaS). As part of this service we provide industry-leading technical support to enable customers to have the option of a fully managed service either on a 3 or 5 year contract.”

This proven track record and success in large scale transitions and cloud solutions have been a key factor for ANS’ recent contract wins with DeVere Group, Salford City Council and Howard Jackson, demonstrating the ambition of the business and its focus on growth on cloud based solutions and managed services.

Another key area of growth for ANS Group over the year has been the increase in existing and new customers choosing ANS Managed Services.

ANS are confident that their Managed Services solutions will see a high degree of adoption based on the success and feedback to date, together with the company’s own extensive research which has shown that up to 70% of self-managed infrastructure ‘system down’ incidents are caused by human error, which would be alleviated with an ANS Managed Service solution.

The company has delivered a significant number of i3 infrastructure solutions for a broad range of customers. ANS has continued to build and develop their business and technical capabilities, leveraging the investment and expertise in ANS’ cloud infrastructure to provide existing and new customers with a seamless transition to the company’s i3 cloud solutions, and in an increased number of cases, a fully Managed Service.

ANS has continued to invest in the development of the next phase of growth solutions. These include ANS’ National Cloud shared cloud offering that is specifically aimed at the SMB market, and the company’s data centre proposition, which has already received widespread acclaim. As an extension to i3 ANS have harnessed the technical and business expertise within the group. Building on the foundations of last year, ANS’ team are developing a data centre network and cloud solution that gives the company the capacity to continue the growth and development of the business as the UK’s leading expert and provider of infrastructure solutions.

Outlook:

As a direct result of ANS Group’s reputation, expertise, experience and stability, together with the developments and increased awareness in the market, ANS are continuing to see a significant increase in customers choosing the i3 in the cloud and Managed Services solutions, safe in the knowledge their infrastructure is in expert and safe hands.
ANS has the opportunity to provide high grade IT solutions both on premise for those customers who still want to deliver their own services, or via the cloud and data centre network managed by ANS. ANS have a clear set of business strategies and objectives in place for the coming years, including a target of £100m turnover by 2014. In order to achieve the objectives and growth plans ANS are recruiting an additional 50 staff across the business, including consultants, sales people and apprentices. ANS are committed to their Apprentice Scheme, providing work opportunities for young people.

Based on the success and impressive financial results from previous years, the developments and achievements, together with the solid investment in cloud, infrastructure and people, ANS are confident that they are on track to achieve the planned growth.