Horizon H1 revenues jump almost 40pc

14 Sep 2006

Irish IT services and products distributor Horizon Technology Group plc has reported a 39.5pc increase in revenues for the first half of the 2006 financial year to €131.2m from €94m a year ago, it emerged this morning.

The group reported a gross profit of €18.7m, up 34.5pc from €13.9m last year. It reported a trading profit of €4.4m, up 16pc from last year.

The company described H1 this year as a period of “significant strategic progress” culminating in a number of acquisitions that included UK enterprise security firm EquiP, Irish SAP consultancy EPC and Irish e-learning firm WBT.

In recent weeks Horizon exited the volume distribution market with the sale of its distribution and channel services division Clarity to UK firm Westcoast for €6.2m in cash.

The company attributed a combination of significant growth in enterprise solutions revenue and an expected reduction in gross margin to strong growth in gross profit.

Horizon chief executive Gary Coburn said the strong results create for the company a solid foundation to sustain growth. “The first half of 2006 was a period of significant strategic and financial progress for the group.

“During the year, we delivered on our strategy of building additional partnerships with leading global IT vendors in our target markets, through a combination of acquisition and organic development.

“These recent business developments provide Horizon with a solid foundation to sustain medium term growth and broaden our relationships with major IT vendors,” Coburn said.

The company’s chief financial officer Cathal O’Caoimh said that Horizon is a significantly changed business following the financial and strategic developments of recent months.

“Not only is the business singularly focused on enterprise solutions, it also has a greater number of leading market positions and its financial capacity will be considerably enhanced following the disposal of the volume distribution division,” O’Caoimh said.

By John Kennedy