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Horizon posts 20 per cent rise in profits
Enterprise up, channel down
Horizon Technology Group has posted a 20 per cent year-on-year increase in pre-tax profits in its results for the first half of the year.
The interim results for the six months to 30 June 2005 showed the company's seventh consecutive half-year of growth in operating profit. Pre-tax profit climbed to €4m, up from €3.35m a year previously.
The company attributes the growth to the strength of its enterprise solutions division. Market share gain in the UK and Ireland are cited for the division's growth of 12 per cent year-on-year and 25 per cent sequentially.
This growth has also been reflected in Horizon's adjusted diluted earnings per share (EPS), which increased by an average of 25 per cent in each half-year period since the first half of 2002.
However, revenue in the distribution and channel services division fell by 18 per cent year-on-year, and was flat compared with the previous six months.
The company has also entered into a number of new partnerships during the six-month period, with companies such as EMC, Veritas Software and Acer.
According to its statement, Horizon has continued to keep costs under control and focused on efficiency gains during the six-month period. This approach helped keep growth in operating costs to 3.3 per cent year-on-year, increasing to €12.8m from &euro12.4m.
Net debt fell to €6.7m, compared to €8.1m a year previously.
"These results reflect excellent progress for the group," said CEO Gary Coburn. "Good customer satisfaction, resulting in market share gains in the UK and Ireland, a high level of control of costs and the addition of new vendor partnerships have enabled Horizon to continue growth in profitability for the seventh consecutive half-year period."
Horizon forecasts that the market recovery seen over the past 18 months will continue, and is anticipating a higher level of growth-based investment in technology by corporate customers. The mobile communications sector is expected to be the strongest in the next 12 months.
Horizon was founded in Ireland in 1998, and currently employs more than 200 people.