Deals drive revenues at Chess

ACQUISITIONS are continuing to drive sales and earnings at business telecoms group Chess.

It is a consolidator of small to medium-sized telecom resellers, having completed more than 60 acquisitions in the last eight years.

In the year to April 30 sales rose 10% to £36m, while earnings, before interest, tax, depreciation and amortisation (EBITDA) were up 4% to £7.4m.

After taking into account all costs, pre-tax profits slipped 15% to £3.9m

During the year the firm acquired 11 customer bases from other resellers for a total of £7.1m, up on the previous year’s nine for £4.5m

And since the year end it acquired a further 12 for £6.6m. In June it bought Essex-based Cable Telecommunications.

In April 2011 the group’s facility with Barclays was consolidated into an £8m loan. It also has a £12m revolving credit facility and a £1m overdraft. In September it agreed a new £5m funding line with the bank. Chess has 156 staff, up from 143.