Excalibur is on the hunt for further acquisitions following the recent purchase of IT firm Bridge Solutions and plans to increase its headcount by 25% by the end of this year.
Excalibur MD James Phipps said he was looking at the books of a number of companies, ranging from mobile and fixed-line services to IT. Excalibur is repositioning itself as a unified comms company as Phipps believes ‘there is not a lot of margin left in pure mobile’. This is because operators are focusing too much on market share rather than revenue, he said.
Phipps added: ‘There’s no point in operators fighting over customers who aren’t going to be giving them enough money [to justify it]. Some of the deals being offered are commercially not viable.
‘The aim is to position ourselves as a 50/50 business between mobile and other services. That could be IT, fixed-line services or unified communications like Vodafone One Net. It’s a question of revenue.
The existing mobile market is a decreasing revenue stream for us. If you continue to rely solely on that part of the business, you will be in trouble. So our move towards a 50/50 business is more out of necessity rather than anything else.’
Despite the acquisition strategy, Phipps said he planned to focus on organic growth by driving more value out of the businesses it has bought. Excalibur currently has around 5,000 customers. He said: ‘We have a lot of customers and our business focus has been about adding services. That’s why the acquisition [strategy] has been there: to try and fill additional need to customers. We want to offer the best in quality and drive the right revenue. I’d say the average revenue is around £33-34 but where we are is significantly above that. I’d rather have 250 customers spending £35 than 500 customers spending £10.’
Phipps said he recently hired a new management team to spearhead growth. He said: ‘During the past three months I have taken on an additional 25% staff, but I’d like to add another 25% by the end of the year. That would bring us from between 55–60, which we have now, up to around 70-75. I’m recruiting for a project manager, new business sales people, account managers and technical staff.’
Excalibur bought IT services provider Bridge Solutions last month, its second acquisition in the past six months. Phipps said the dealer was on course for its most profitable financial year and will have increased sales on a like-for-like basis.