Zen Internet on course to achieve £41.3m sales

INTERNET service provider Zen believes that it is on track to smash through the £40m turnover barrier over the next financial year and increase its profits.

The Rochdale-based company, which bought its offices at Sandbrook Park in Rochdale for £20m in 2008, believes that it is on course to increase its sales by almost 10% this year from £38m to £41.3m.

The internet service provider will achieve this growth by winning new contracts and launching a new range of products.

Zen Internet saw its profits fall 70% to £589,000 last year as a result of ongoing trials of its new services as well as costs involved with its new offices.

The company is now in the process of letting a part of its offices – which were the former headquarters of Thomas Cook – which will help to reduce its costs.

And from September, it will also launch ‘up to 40Mbps’ fibre optic broadband services.

Founder and chief executive Richard Tang said: “There have been expenses involved with developing and running the new broadband network in conjunction with our existing service over the past year.

“But we were unable to turn off the old network until we were 100% sure that it worked.

“We are now on course to increase our turnover to £41.3m over the next year and we are achieving this by providing our customers with the best available service.

“There is also terrific growth in the virtual private network (VPN) sphere – and we have recently undertaken a three year contract with SSP to install a VPN across a range of stores including Millie’s Cookies and Upper Crust.

“Our income from existing clients has remained very stable which has much to do with the fact that, even in a recession, the internet has become a staple of everyday life which is imperative for business.

“And our award-winning reputation within the market has meant that new business is still coming in.”

Last week Mr Tang won a prestigious entrepreneurs’ award from Ernst & Young which recognised Zen’s outstanding customer service.