XLN Telecom is forecasting a profit increase of 20% this year as it prepares to change its name to XLN Business Services to reflect the growing range of services the telecoms provider offers its small business customers.
The company will formalise its name change in the next few weeks. When it launched in 2003 it was a fixed-line provider but it has evolved into a business services company cross-selling an increasing number of services to its customers, including broadband, mobile, cut-price card processing services, discount energy deals and VOIP systems.
XLN Telecom’s 130,000 customers are mainly small businesses with between one to five employees. Head of brand marketing Barney Jones said it uses its clout to negotiate deals that these small companies cannot achieve on their own. ‘We act as a discount counterpoint to the large utilities, be they large fixed-line operators, large mobile network operators, large energy companies or the banks. So our new name better reflects the range of services we offer our customers. This is a new model for business and there is not really another company like ours delivering a range of services to small businesses.’
The firm has experienced rapid growth with profits rising from £4.5m in 2009 to £11.8m in 2011 and sales growing by 50% over the last four years. It recently won the accolade of the fastest growing telecoms company in the Sunday Times Deloitte Buyout Track 100, which ranks the 100 private equity-backed companies with the fastest growing profits. XLN Telecom was ranked 24th in the list.
XLN founder and group CEO Christian Nellemann (pictured) said: ‘We give business owners fast and efficient service at low prices, which is why 130,000 have left other providers and joined XLN. We have a dedicated and enthusiastic team who understand the pressures small business owners face and want to help them. With our new services we are looking to expand our mission to help small businesses in the UK save money.’
Based in Vauxhall, south London, the company has 145 staff and is currently advertising for 40 telesales agents in response to its rapid growth. It added mobile to its services in January 2010, setting up an MVNO with Three via MVNA Gamma. It began by offering cut-price Sim deals to customers, adding handsets to its portfolio in response to customer demand. Last year, it joined Gamma in migrating its mobile connections from Three to Vodafone.
Jones said the migration resulted in very few mobile connections being lost but did slow mobile sales during the transition. ‘However, that rate has picked up since,’ he said.
He declined to say how many mobile connections the company currently makes but said XLN is Gamma’s largest MVNO.
XLN Telecom has thrived during the recession as small businesses strived to cut costs, according to Jones. ‘When times are good businesses can’t be bothered to save a few pounds off their bills, but when times are tough they all look to see where they can make savings and we can get them those better deals,’ he said.