Big rise in profits for 2ergo phone company

Reporter: Ask Rossendale
Date online: 19/05/2008

2ergo, the Rossendale-based provider of mobile phone services, today reported a 23 per cent rise in pre-tax profit to £1.49m in the six months to February.

Turnover was up 13 per cent to £17.8m and gross margins were maintained at 26 per cent, the company said in a statement.

Adjusted pre-tax profit, which does not take into account amortization, was up 20 per cent to £1.9m.

The company also revealed that its MultiSend product is now being used by O2 in conjunction with 17 million customers.

Barry Sharples, joint chief executive, said: “We are pleased to announce another strong period of growth, which is demonstrated by solid financial results, the launch of further new services for clients, and significant progress in strengthening the operational board and management team in readiness for the next phase of expansion.

“Launched during the period, 2ergo's MultiSend product suite has already attracted considerable attention from major brands seeking the very latest interactive mobile technology to power their marketing and customer relationship management programmes. Most notably, the board was particularly pleased to report a five year contract with O2, who now use MultiSend to engage with over 17 million customers.

“With more and more organisations now recognising the potential of the mobile channel the decision to launch 2ergo's Business Partner Programme is proving to be the right one. This strategic initiative is helping to broaden and evolve the group's routes to market, providing greater access to potential customers via an indirect sales force.”

Sharples said he was confident that the company could capitalise on the opportunities created by convergence in communications and said the mobile phone industry “continues to be one of the fastest developing sectors in the world”.