For the twelve-month period, NetStore trimmed its net loss to 132,000 pounds ($234,960) from a loss of 5.12 million pounds ($9.11 million) in 2003, on revenue that grew 46% to 20.7 million pounds ($36.9 million). However, excluding revenue from acquisitions and since discontinued operations, revenue would in fact have grown 41% to 18.5 million pounds ($32.9 million) in the year. At the end of the period, NetStore had 9.9 million pounds ($17.6 million) in cash and cash equivalents compared to 12.5 million pounds ($22.3 million) at the end of 2003.
NetStore said that total new business won in the year was 7.9 million pounds ($14.1 million), which was below expectations, however the company won a significant project in partnership with BT Syntegra for Essex County Council worth 6.2 million pounds ($11 million) over eight years, which ranks as its largest to date. Managed services now accounts for 50% of revenue, down from 70% in 2003.
NetStore has spent the past year refocusing its business around medium to large enterprise accounts. In November 2003 it disposed of a small ISP business acquired through its NetConnect takeover in December, the company sold its SME online backup business to BT, and in February 2004, it sold its RedRock Technologies mobile software business to the management. In June 2004, the company said it had completed its round of disposals with the sale of its NetConnect training arm to InTechnology for 900,000 pounds ($1.6 million) in cash. All remaining areas of the business are now core, it said.
NetStore has also continued to grow through acquisitions. In December the company purchased managed services provider EMS Global, which contributed 600,000 pounds ($1.06 million) to revenue in the year, and CEO, Neil Lloyd, said that the company will continue to look for acquisitions.
