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November 26, 2010updated 12 Apr 2017 4:18pm

Specialist lessor looks to emerging markets

Devices like Blackberries and iPhones have created potential markets for Microlease in Asia and Latin America Test equipment lessor Microlease has identified Asian and Latin American markets as potential growth areas, as mobile technology grows in popularity.

By Claire Hack

Devices like Blackberries and iPhones have created potential markets for Microlease in Asia and Latin America. Claire Hack reports.

 

Photograph of Nigel BrownTest equipment lessor Microlease has identified Asian and Latin American markets as potential growth areas, as mobile technology grows in popularity.

The company has begun to scope out the markets in order to understand the quality of their infrastructure.

CEO Nigel Brown said: “We are looking at whether to create a local presence in countries like Brazil. We have seen an emerging telecommunications market in these countries because of the development of technology like iPhones and BlackBerries.

“There is a need to strengthen the networks’ backbone and this has stimulated a strong investment need for test equipment.”

The company has predicted revenues of £50m (€57m) by the end of 2010, compared to £30m in 2009. The result follows four consecutive years of growth above 30%, following a management buyout in 2006.

“We have been growing quite significantly and our expectations are that that will continue. We also have two regional offices in the US at the moment and that is likely to grow in the next one to two years. It is a duplicate, but smaller version of what we are doing in Europe,” Brown said.

Revenue grew by 31% to £30m and profit before tax was up 0.8% to £3.91m in the year to end-February. Profits after tax fell by 14% to £2.76m following higher tax payments.

A new 25,000 sq ft corporate headquarters in Middlesex is to open in January 2011, housing 100 staff including 15 new hires.

“It will give us increased capacity for the growth of the business over the next two to three years. The existing site is 40,000 square feet so an extra 25,000 is a fair chunk for us. It will almost double capacity for both rentals and leasing.”

The company has invested £1.5m in two newly released test platforms, known as the MTS-6000A and MTS-8000, from JDSU, a provider of broadband test and measurement products. “Over the next 12 months, we expect to double that investment,” Brown said.

“It will be a very successful product. It will be one of their top-performing products over the next five years.

“All the telecoms markets around the world will be using this platform. It will be very strong for leasing services as it fits the full profile of services we provide.”

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