News

Netservices posts maiden profit

18 November 2008 09:13:00

Business communications group Netservices reported a maiden profit in the year to 31 August and said it is confident of continued long-term growth in spite of the current market turmoil.

The Manchester-based firm, which provides services such as video conferencing, reported a pre-tax profit of £50,000 compared with a loss of £401,000 the previous year.

Turnover fell to £7.1m from £7.4m due to the sale the wholesale consumer broadband business.

The company managed to lift margins by reengineering operational costs.

NetServices said the recent deterioration in the economic outlook would benefit it in some ways as companies look to cut their costs, for example, by holding video conferences.

"I think this year is going to see the coming of age for video conferencing," chief executive Mark Vickers said.

However, the firm also acknowledged the possible adverse effects of the downturn, saying it "acknowledges the short term risks to both revenue growth and profitability growth from the current dependence upon direct customers."

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