ITnet Plc, the Birmingham, UK-based IT services company, plans to use its current financial strength to make further acquisitions, both to expand the range of its skills and strengthen its position in the European market. While it supports customers in eight European countries, this is done from its UK base and ITnet is looking to establish operations in France or Belgium to give it a permanent presence on the continent.
This follows mid-term figures showing net profit increased 100.9% to 2.8m pounds ($4.4m) on revenue 21.5% higher at 60.9m pounds ($97.4m). Net earnings per share rose 135.2% to 4 pence. ITnet’s shares perked up 6.4% to 460.5 pence on the figures with the market relieved that the company expects little slowdown as a result of Y2K, as little of its revenue is part of the discretionary spend to address Y2K issues. With an order book of 326m pounds ($521.6m), ITnet says it expects to maintain its record of competitive wins and retention of major renewals.
The big growth area for the company has been in business process outsourcing which accounted for 25% of revenue in the first half compared with 19% a year earlier. Infrastructure outsourcing accounted for 47% of revenue while applications provided a further 28% of business.
