Nimans beginning to benefit from Rocom deal
TELECOMS reseller Nimans grew sales by 48% last year to following its acquisition of its main competitor Rocom but said that the “continuing adverse economic situation” and tightening markets meant that it had been unable to take full advantage of the deal.
The Salford-based company achieved sales of £69.8m (2008: £47.2m) but saw its pre-tax profits drop 57% to £123,775 (£285,533).
Group finance director David Bennett said that costs associated with the purchase of Rocom -“which we had anticipated” – had impacted on profits.
Nimans bought Wetherby-based Rocom from its previously listed parent group AT Communications plc in March 2009 for £12.45m in a deal which founder Julian Nimans had described as a “once in a lifetime” opportunity.
The deal put the two biggest names in telecoms equipment distribution together, but was not without its problems. Shortly after completing the deal, Nimans launched a warranties claim valued at up to £36.2m against AT Communications, which was placed into administration in August 2009.
Despite this, Bennett said that both firms were beginning to benefit from the deal following a restructuring exercise.
“Despite exceptional one-off costs of over £500,000, operating profit still increased to over £242,000, compared to £15,500 for 2008.
“Our projections for this year are for turnover to rise to over £80m, generating profits in excess of £2m.
“We are very happy with the performance of the business and its current trading levels.”
The average number of employees working in the firm during the year increased by 130 to 318.
