Infinity boosts profit on less turnover
- 19 August, 2004 22:00
A SHIFT from product sales to services has boosted profits of the Infinity Group on much lower revenue.
The IT and consultancy company has reported net profit after tax of $627,000 for the six months ending June 30, on revenue of $27.4 million. This compares with profit of $124,000 on revenue of $32 million in the previous half-year.
Infinity Group head Stuart Robb says the business, which employs 380, is in a much stronger financial position, with no debt and $4.3 million cash. The higher profits reflected higher margins made on the services side of the business, with the drop off in revenue coming from lower sales of desktop servers, switches, storage and related infrastructure.
Product sales had suffered a “slow half”, Robb says, but he expects them to bounce back in the second half of the year. Infinity also claims a developing reputation for consultancy services.
“We have a better mix of work, which is organised and delivered better,” Robb says.