Ipswich-based Getech drives growth in annual profits at IP Telecom group

Guy Watts, managing director of Getech

Guy Watts, managing director of Getech - Credit: Archant

Desktop services group IP Telecom (Holdings) has reported increased annual profits, despite a hit to revenues following the end of a major contract.

Accounts filed at Companies House show that IP Telecom, which operates principally through its Ipswich-based operation Getech Ltd, saw turnover fall to £39.043m in the 12 months to December 31, 2016, from £45.077m the previous year.

Getech is a specialist in “thin client” technology (devices without a hard drive which operate via a remote server) and has been affected by the onging integration of cloud computing firm Wyse into Dell, which saw a supply contract taken in-house when it expired early last year.

“Revenues for 2016 were subsequently reduced but our overall profit for the year was maintained as a result of improved efficiencies and higher margin service offerings,” says the company in the report accompanying its accounts.

Revenue at IP Telecom, a member of the EADT/EDP Top 100 list of the 100 largest companies in Suffolk and Norfolk, was also affected by the sale last year of its end-user division, Corbel Solutions, to a management buy-out team.

Corbel contributed revenue of £541,000 up until completion of the deal in May, compared with a full-year contribution of £1.775m in 2015.

The sale delivered a one-off profit of £245,000, lifting the group’s pre-tax profit total for the year to £927,000, compared with £731,000 the previous year.

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However, stripping out the disposal of Corbel, the profit on continuing operations was also just ahead of the previous year, at £677,000 against £669,000 in 2015.

“In general the market for thin client devices has not shown significant growth this year but our relationships with new vendors such as Igel continue to deliver increased opportunities as existing Igel customers continue to turn to Getech for our thin client expertise and solutions,” IP Telecom adds in its report.

“Other vendor portfolios remain strong, as evidenced by Getech again being awarded distributor of the year for both BT and Kemp. Our emerging technology team also had a strong year with vendors such as Teradici and NCS showing significant growth.”

Getech is a major supplier to the education sector and received a boost in November when it was chosen by Lenovo as a Higher Education supply partner under the Servers, Storage and Solutions National Agreement (SSSNA).

“Our schools division retained its status as one of just four accredited UK Google Premier Partners for education,” the group’s report adds. “Our revenues continue to increase as our reputation and go to market strategy continues to expand our customer base in this highly competitive sector.”