Adept4 cuts pre-tax losses as cloud services grow

Managed services player Adept4 has seen pre-tax losses narrow as its efforts to restructure the business have started to bear fruit.

The firm delivered £0.8m in pre-tax losses for the year to the end of September 2017, which was down from £1.4m in the previous twelve months.

Revenues were also up from £4.9m to £10.3m, with the portion of recurring revenues increasing from £3.2m to £7.3m, which is 71% of the total.

Growth in demand for its Microsoft Azure and Office 365 services helped increase those numbers and the firm has also been adding some complementary solutions into the mix working with other resellers to strike up further opportunities.

One of the major initiatives in the last fiscal year was to create a single platform and operational structure to simplify the business structure.

"The creation of a single operating platform for future growth has been at the heart of everything that we have sought to do in the last 12 months," said Adept4 non-executive chairman Simon Duckworth.

"The successful establishment of an integrated business with a single brand, proposition, structure and platform was imperative, and I am pleased to report our success in achieving this objective," he added.

"Our strategy, which is articulated more fully in the Business Review, remains very straightforward. We aim to provide IT as a Service to our customers on a pay-as-you-go basis, based on consumption of the service and utilising an asset-light delivery model (reducing our investment and leveraging public Cloud providers' investments, particularly those of Microsoft). To succeed we need to "delight" our customers and we need to sufficiently differentiate ourselves from the competition," he stated.

The firm also indicated that since its fiscal year had closed it had been able to beef up its IT security offering and had made further management changes to "strengthen the day to day operational management of the business and enhance credibility in cloud services".

Duckworth also made it clear that the firm would consider adding to its capabilities through acquisition: "We also remain vigilant in looking at acquisition opportunities that provide the appropriate mix of skills, capability and contribution at the right price, and which will enhance growth in our business and increase shareholder value."