Competition sees Zen Internet profits dip by a third

Telecoms equipment opportunity

Profits at Rochdale-based cyber specialist Zen Internet have taken a hit from aggressive pricing of its competitors.

It’s pre-tax profit of £2.3m for the year ended September, 2016 was £1m less than it made in 2015.

Turnover in the period was up 5.6% to £57.2m from £54.2m on the prior year. Growth came from voice, ethernet, private networks and hosting products and services.

“Gross profit percentage reduced year on year,” director Richard Tang said in the company’s strategic report. “The business has seen increased margin pressure due to aggressive pricing by competitors and increasing bandwidth demands of its customers.

“These trends are expected to continue and the business is in the process of doubling the size of its on-net exchange footprint.”

During year Zen increased its headcount from 407 to 415.

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