Nycomm ditches ‘revenue flattery’ and sees profits grow

TELECOMS equipment supplier, the Nycomm Group, saw pre-tax profits jump 65% to £3m in 2011.

The Salford company, which includes Nimans and Leeds-based Rocom, achieved the figure despite a 9% fall in revenue to £74m.

The group, which sells telephone systems, headsets and audio conferencing products, was helped by lower distribution costs and administrative expenses.

It said sales fell because it “parted company” with one of its suppliers, Avaya, which accounted for £6m. But it described this business as “revenue flattery” that delivered no margin.

Finance director David Bennett said: “These results are consistent with the board’s expectations given the current economic environment and leaves the company well positioned for future investment and growth.

“Management and staff have worked hard to deliver a robust set of results in what remains a challenging economic period for the whole of the UK.”

He added: “A rejection of revenue flattery where we turned away business that delivered no margin – and the ending of a trading relationship with manufacturer Avaya – saw overall revenue fall by 9% to £74m. But operating profit grew by 36.2%.”

The business is controlled by chairman Julian Niman who took a dividend of £195,000, down from £373,656 last time. During the period it employed 241 staff, up from 228.