AIM listed AT Communications Group Plc has issued a trading update for the year to 31 December 2006 including expected profits and progress on the integration of Rocom, as well as a major contract win with Siemens.
The update noted that ‘trading continues to be generally strong, with the Group awarded a substantial new contract with Siemens Enterprise Communications for online services using Rocom proprietary e-trading platform, RocomX, as well as the provision of managed services.
The Board expects to secure additional contracts during Q4 but the bulk of these revenues will be recognised in 2007. The Group expects to report pre-tax and pre-goodwill profits in the order of £4.5 million, having reported a loss in the previous financial year. The Board also expects to pay a maiden dividend for the year to 31 December 2006.
Since the Rocom acquisition in August 2006, the Group has largely completed the reorganisation and integration programme and will fully operate as three key business units with effect from January 2007.
The Rocom brand is now used for all distribution and channel customers with ATC indirect (channel) customers now serviced by Rocom, as service teams of both organisations are fully integrated. Cross-selling opportunities across the direct sales teams are also already being exploited.
The Group is about to launch a newly branded Service division which comprises engineering and technical service delivery to direct and channel customers as well as third parties such as BT and Vanco.
The Siemens contract is for the provision of both online and offline supply support. This will incorporate online catalogues and multiple branded online stores for key Siemens customers using Rocom proprietary e-trading platform, RocomX. The contract with Siemens also extends to the provision of managed services to Siemens, including vendor management, warehousing, branded fulfilment, web and IT support, marketing services & consultancy support. Rocom will also be supplying a full range of communications handsets and peripherals.’
Alex Tupman, ATC Chief Executive, said: “We are delighted to have won this multi-million pound new contract which demonstrates that Rocom is not only continuing to secure large customers but is benefiting from being part of a larger group.
“With most of the integration of Rocom complete, we remain confident for a strong 2007 performance based on three business units and accordingly expect to pay our first dividend for 2006.”