2014 saw great success for our strategic plan to add a strong infrastructure and services business to our range of available solutions.
Results at a glance:
- Gross Profit increased by 14.7% over the previous year to £15.6 million
- Gross Margin percentage increased to 21.0% from the previous year’s 17.6%
- EBITDA before exceptional items increased by 30.4% to £4.5 million, driven by the focus on Gross Margin and tighter cost control
- Cash balances at the year-end amounted to £8.0 million, compared to the previous year’s £5.4 million
Sotos Constantinides, our Finance Director, commented on the results, “Fiscally, 2014 for Stone Group has been one of our most successful periods, which is mainly due to the acceleration of our services and infrastructure business, and our commitment to being as efficient as possible in the way we operate.
The EBITDA results are particularly pleasing, as they are driven by our tough focus on Gross Margin. The additional profit and active working capital management led to improved cash flow and an increase in cash balances, which really demonstrates the positive effect our services strategy is having on our agility and stability as a business.”
Simon Harbridge, our CEO, added, “Our drive to offer end-to-end IT services and solutions has meant that our customers can now come to us for the complete package, not just the hardware we’ve been previously known for. We’re helping schools, colleges, universities and other public sector businesses change the way they think about technology’s role in their own transformations.
Infrastructure, support and managed services contracts now account for over 15% of our overall revenue. Broadening our portfolio with these services has had a big impact on the profitability of the overall business.”
Click here to download a full copy of our FY14 financials.
You may have seen recent press activity about our corporate restructuring. To help you understand the process, we’ve put together some FAQs, which you can download here.