Finnish IT leasing company 3 Step IT has reported a 20% year-on-year rise profits in 2013 to 11.3m despite a drop in revenue.
The results follow the company’s market consolidation, which saw it close down several of its operations in the US and Russia, a move which 3 Step claims will allow it to focus on business in core markets.
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The company recorded a revenue of 437m in 2013, registering a decrease of 2% from 2012 levels while operating profits were up from 9.4m reported in 2012.
Artti Aurasmaa, 3 Step’s chief executive, said: "Our improved profitability reflects our increased focus on our core business and selected market areas.
"We also succeeded in increasing the sales of value-added services, such as the management and replacement of IT devices, as planned."
He added an increased appetite in the market for refurbished equipment last year has continued into the beginning of 2014, a factor which combined with an increased focus on the sharing economy to positively impact growth.
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By GlobalDataAccording to Aurasmaa, this trend is attributable to three main factors: "Firstly, end-users have realized that a recycled second-handdevice can be a better choice than a new one.
"Secondly, the economic downturn has also increased the popularity of used devices.
"Finally, the growth of the market for refurbished devices has also been positively impacted by the slow development of Windows environment, which has caused users to stick to their old devices and older operating systems."
In 2014, the company aims to increase its turnover to over 500 million, as well as improving profitability, by developing its offering to customers.
"The diversity of equipment used at the workplace is increasing with the technology transformation, which sets new demands on IT management," said Aurusmaa.
He added: "When desktop computers and laptops change to hybrids and tablets, we want to be the best partner for our clients in this transition."
