Nimans extols benefits of Rocom deal

SALFORD-based telecoms distributor Nimans said that it has consolidated its position as the UK’s biggest independent in the wake of its 2009 acquisition of Wakefield-based competitor Rocom.

Accounts for parent company Nycomm Holdings for 2010 have just been filed which include a full year’s contribution by the former Rocom business. Sales increased by almost £12m to £81.5m, while pre-tax profits jumped from £123,775 to more than £1.8m.

Group Finance Director, David Bennett, said the positive results reflect the company’s progress following the acquisition of rival comms distributor Rocom in March 2009.

“Overall, these are a pleasing set of figures which provide us with a solid platform for future sales and profit growth,” he said.

“The business is in a healthy position as it begins to fully benefit from the acquisition and amalgamation with Rocom. There’s been a full year of benefit where we have been able to combine synergy savings from both businesses with organic growth.

“For example we now only have one warehouse and have moved Rocom to a new office complex on the outskirts of Leeds which significantly reduces our overheads.”

Nimans acquired Rocom in a deal which was initially reported to be worth £12.45m. However, it later issued a warranties claim worth more than £3.6m against Rocom’s former parent group, AT Communications Group.

AT Communications was eventually placed into administration and the claim settled with administrators Grant Thornton in September last year.

The restructuring which followed the deal has also seen changes to each of the offices’ functions. Nimans is now focussed on supplyuing resellers, whereas Leeds-based Rocom is now used to carry out the firm’s direct sales. The parent company’s name has also changed to Nycomm Holdings. 

Writing in the notes to the accounts, founder Julian Niman said that the company’s post-tax profit of £1.6m had been transferred into its reserves, which had “further strengthened and already strong balance sheet” – up by £1.2m to £14.7m at its year end.

“Although UK conditions remain uncertain we believe the measures we have put in place will lead to further improvement in our overall performance and we face 2011 with renewed confidence and optimism,” said Niman.