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July 25, 2012updated 12 Apr 2017 4:06pm

Growing Econocom confident of profit

Econocom Group, the European IT and telecoms funder, has posted consolidated half-year revenue of 737m, down 3% from 763m in the first half of 2011. Despite the drop, the company said its recurring operating profit is set to rise sharply compared the 18.6m recorded in the first half of last year because of healthy sales margins and cost-savings.

By Charles Wheeldon

Econocom Group, the European IT and telecoms funder, has posted consolidated half-year revenue of €737m, down 3% from €763m in the first half of 2011.

Despite the drop, the company said its recurring operating profit is set to rise sharply compared the €18.6m recorded in the first half of last year because of “healthy sales margins and cost-savings”.

The company also said its net profit is expected to increase considerably due to “a significant drop in financial costs and exceptional reorganisation costs lower than in H1 2011”.

Econocom’s cash position has risen by almost €50m over the period compared with the first half of 2011, according to the firm’s preliminary financial report.

In the first half of 2012, Econocom made two acquisitions: virtualisation solutions company Centix and telecoms management software firm Tactem, which it said has enabled it to win a number of major contracts.

Econocom also reveals it is considering further acquisitions of SMEs which could be finalised in the coming months. Last week the group announced it had signed an agreement to acquire Cap Synergy, the French IT security company.

Econocom’s full half-year results will be published after close of trading on 30 August. The company maintains its annual growth guidance of “a slight rise in revenue, recurring operating profit in excess of €70m, and net earnings per share of almost €2”.

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