Deals spree drives growth at Elite
A HAT-TRICK of acquisitions in the final quarter of 2011 boosted sales and profits at Lancashire-based business telecoms group Elite.
Turnover passed £20m for the first time in the Chorley firm’s 12-year history, newly filed accounts for the year to the end of July reveal.
In September 2011 Elite acquired London-based Liquid Business Services, a month later it picked-up Tarifff Reduction Services and in December bought GP Network Solutions.
The contribution of the three business, £4.1m in turnover and £977,000 in operating profit was the catalyst for growth for the business – underlying turnover was flat at £16.2m.
Boosted by the acquistions turnover rose from £16.2m to £20.38m, while operating profits rose from £2.2m to £3m and pre-tax profits from £2.2m to £2.8m.
Directors Robert Moulding, Alex Cliffe and Nick Mannion said they consider the “profits achieved by the group to be particularly satisfactory given the difficult trading conditions in the UK economy.”
Elite’s acquisitions were supported by a £11.5m facility, agreed last September, with Lloyds Bank Wholesale Banking & Markets in Manchester.
Most of the funding, £7m, was arrranged under the government’s National Loan Guarantee Scheme (NLGS), which aims to help companies further reduce their borrowing costs by one percentage point.
Elite was founded by entrepreneur Matt Newing, who remains majority shareholder of the business. His other business interests include Isle of Man-based tea and coffee supplier Cuppa Co.
