Business and Financial News

Technology firm ANS Group today said its £500,000 investment spree in staff and equipment last year was paying off with first quarter sales ‘significantly ahead’ of 2009.

Its spending meant full-year profits were down but chairman Scott Fletcher said it had been necessary to facilitate growth over the coming years as it targets annual sales of £30m.

He also shrugged off the prospect of public sector spending cuts hitting ANS in the future.

ANS, which is listed on the PLUS market for smaller companies, derives 55 per cent of revenues from the public sector but Mr Fletcher said its hardware and software systems would help bodies such as the NHS to save money in the long run by reducing overall IT costs.

“They still have to renew equipment or buy new servers if they run out of space,” he said.

ANS provides and installs data centres, networks, servers and email systems to the public sector and private companies including Enterprise, BUPA and Interserve.

The group posted pre-tax profits of £1m for the 12 months to March 31 against £1.523m in 2009.

Revenues climbed £1.2m or 10 per cent to £13.3m and gross margins edged up from 27.9 per cent to 29.5 per cent.

A second interim dividend of 2.75p makes a total of 4p for the year, the same as 12 months earlier.

Cash balances rose to a record high of £4.3m, up by £1m, and ANS is debt-free.

ANS Group increased staffing levels by 20 per cent to 80 and expects to have a 100-strong workforce by the end of this financial year and the firm is seeking to take additional space at the Science Park to accommodate its growth plans.

Mr Fletcher said the group had decided to invest to ensure it could recruit talented specialists who had been made redundant elsewhere or were seeking a move to a more secure employer.

He also said the company, based at Manchester Science Park, remains on the takeover trail.

Mr Fletcher said: “The company has continued to grow despite the incredibly difficult market conditions. We chose to i

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