Northampton based distributor Shebang has seen an increase in turnover but a decline in profit after a turbulent 2009.
The distributor saw its turnover increase by 92% to £59m during the year ended 30 December 2009.
Despite the increase in revenue, profit declined by over 50% from £565,595 to £245,922.
In a statement reviewing the business, Shebang said the growth was ‘in line with expectations’.
‘We expect turnover to remain at this level as the company looks to move to high margin products and services and to exit from the less profitable channels. For the first half year 30 June 2010 we have seen increased margin growth being achieved,’ the company said.
The distributor stopped working with supermarket giant Tesco earlier this year and has now teamed up with Asda to launch ‘phone centres’ to rival Tesco’s telecoms stores.
Meanwhile, Shebang has also secured a deal with Vodafone as a consumer distributor for the network. The deal means any Shebang customer using the distributor’s software, Sellfone, will be able to connect Vodafone.
The distributor’s results do not include the performance of its retail estate, Go Mobile, which entered into a joint venture with JAG in July.
Shebang was listed seventh in the Sunday Times TechTrak 100, a league table ranking Britain’s 100 private tech companies with the fastest growing sales over the latest three years.
Shebang director and general manager Julian Burton (pictured above left, with Shebang MD Iain Humphrey) said looking over the complete timeframe including 2010 ‘paints a more accurate picture’.
He said: ‘While there was a one-off impact from Shebang Retail last year, the really significant factor was the network moves to pay more on an ongoing basis. This change last year inevitably registered an impact in the short term, but actually strengthened our position overall.
‘We have seen the benefit of that in 2010, with this year to August seeing £1.7m profit from £38m turnover.
‘Shebang committed itself this year to keeping revenue broadly flat and substantially growing profit – we are 100% on target to achieve that goal and have been commended by third parties such as Grant Thornton for managing to deliver the plan as well as the widely recognised Tech Track 100 result.’