MTI cranking up services revenues

MTI has published its first set of numbers since the channel player was acquired by Endless revealing a double digit growth in revenues.

For the 16 months up to the end of March, which marks the time since the deal was finalised, revenues climbed by 12.4% to £94.5m with EBITDA of £2.2m.

Services make up a third of those revenues and decent sales in security and datacentre solutions also helped turnover improve.

As well as cranking up the services side of the business the 16 months of Endless LLP ownership have seen investment and changes in the way the Group operates.

Scott Haddow, CEO of MTI, said that it had invested heavily in staff and had also recruited a management team that meant not a single person who had been on the board at the time of the Endless deal had remained in post.

“We’ve made incremental but strategic investments over the last year, the costs of which have already been recovered as profits have remained stable,” he added “Having made these investments MTI is well-placed to see continued strong revenue growth, and therefore significant improvements in profitability in upcoming periods.”

That investment in staff has been largely completed and Haddow said that he was now surrounded by a strong management team that would be taking the business forward.

"In terms of getting the right people in the right sales and marketing roles that's done," he added "I now have the team I expect in the business for the next few years."

The other change introduced by Haddow has been to increase collaboration across its operations in the UK, Germany and France.

"We have a much more collaborative approach across the UK, germany and France and we have 15 to 25 customers that are global customers and we are seeing a lot of significant growth," he said.

Looking forward the firm is working to a business plan that could see its services revenue climb to contribute 50% of overall turnover in the next few years and there is a hint of possible acquisitions to bring on board additional expertise.

"We are by the very nature of the business acquisitive and we have a very encouraging and active investor that wants to put capital to work," but he added "We would never buy someone just for the sake of buying them and it has to add some value to MTI."