The results for the year to July 31 2008 point to a very promising future for the company - with cash generation up. Post year-end figures also show continuing strong cash generation for 2008-09 with borrowings decreasing.
An ambitious strategic shift from traditional telecommunications to IP seems to have paid off for the firm with group revenue rising from £26.2m in 2007 to £32.48m in 08 and cash generation from £2.16m to £2.41m.
BNS reported underlying EBITDA (Earnings before Interest, Tax, Depreciation, amortisation and discontinued businesses) of £130,000 (2007: £2.26m. This includes new customer acquisition costs but excludes deferred income of £1.97m.)
There was a 15 per cent increase in the number of customers – with half of the Group’s customer base now on contracts of between five and seven years to secure BNS Telecom’s place in the market for years to come.
Garry Moat, chief executive of the Prudhoe-based firm that employs more than 250 people, said: “Our shift to IP telephony has seen us turn a very important corner – we have the largest order book in the company’s history and have made an excellent start to our current financial year.
“In addition to our established fixed line business, we now carry more than 1.5 million IP calls each month from a standing start just over a year ago.
“We offer businesses vital telecommunications services at very competitive prices at a time when firms are looking very closely at their costs. Our product portfolio and market differentiation put us in a strong position despite the current economic climate.”