B2b telecoms dealer Citytalk Communications is predicting turnover will increase by nearly 50% this year from £1.4m to £2m as it plans to acquire at least two mobile and fixed-line businesses and expand its sales staff.
The Aylesbury-based company has experienced rapid growth which has seen turnover soar in the past 18 months from £500,000 to current levels.
Speaking to Mobile, Citytalk founder and MD Matthew Croxford said he was confident turnover would continue to rise this year.
‘We expect turnover to hit £2m by April next year,’ he said, attributing Citytalk’s rapid growth to a recruitment drive over the past year that saw staff numbers more than double from five to 11, allowing the dealer to launch a major new customer acquisition and cross-selling drive.
He added: ‘Over the past three months we have added an average of 25 customers a month compared to around 10-15 new customers a month last year. That increase is mainly because we have reached the stage where have been able to take on more sales staff.’
Citytalk is continuing its recruitment drive, with plans to bring staff numbers up to 15 by the end of the year. The company has also recently moved to new headquarters in Aylesbury that give it the space to accommodate increasing staff levels.
The telecoms dealer, which currently has a base of around 400 customers, targets SME companies with 10 or more employees and turnover of over £1m. Most of its customers are located in the south east around its base in Aylesbury.
However, Croxford predicted that plans to acquire a number of dealerships in the near future would see customer numbers soar and the geographical spread of Citytalk’s customer base widen.
He said: ‘We are looking at a number of potential acquisitions in mobile and fixed and are in active talks with two companies at the moment.’
Croxford said making an acquisition would bring Citytalk to a new phase of growth.
He explained: ‘With our current rate of customer acquisition, combined with our existing base and a newly acquired base of around 300 customers, we will be looking at 1,000 customers by next year with an average of 10-15 mobile connections, which will give us 10,000 active connection opportunities.’
Croxford said the company, which began life five years ago as a mobile dealership, quickly expanded into offering a wider range of unified comms services. ‘Even five years ago when we started it was clear that we needed to offer a converged solution, so we now offer landline, VoIP and broadband and IT solutions as well as a security solution providing CCTV, alarms and vehicle tracking products.’
Citytalk connects its customers to Vodafone, T-Mobile, Orange and Three, with the bulk of its connections made through Vodafone. Croxford is determined that Citytalk will attain Vodafone Gold Partner status in 2013 after narrowly missing out on promotion last year.
He said: ‘We had the highest level of connections for a Silver Partner in the last quarter of 2011 based on our KPIs. We will definitely make Gold Partner next year.’