Services and integration company, Brennan IT, is on the acquisitions trail after an impressive performance in the 2003/04 financial year.
Brennan IT managing director, David Stevens, said he was currently in advanced discussions with a Melbourne-based acquisition prospect and was also looking at the Brisbane market.
As a general rule, Brennan was looking for two types of company to acquire, he said.
“One is an ISP type company which hasn’t ventured out into the voice area and doesn’t have traditional IT service offerings,” Stevens said. “The other is a traditional systems integrator that is probably doing 60-70 per cent product and 30-40 per cent services, and doesn’t have a telco offering.”
Brennan would also look to make further acquisitions between September 2004 and March 2005 in Canberra, Perth and Adelaide to round out its national presence and achieve a state level branch network, Stevens said.
A move into New Zealand was also on the cards.
“We’re finding that a number of our national clients have a presence in New Zealand and are talking about expansion in that direction,” he said. “We are being led by our clients.”
Revenues for Brennan IT and its sister company, SecureTel, were up about 25 per cent during the just completed financial year. Earnings had grown 184 per cent, Stevens claimed.
He said much of the revenue increase was attributable to market bounce back.
Increased earnings were the result of internal efficiencies and changes to the way the business was managed.
“Salaries in the industry have also stabilised and we are buying products cheaper than we used to,” he said.
“It’s about optimising the back end of the business and taking efficiencies where they are.”