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City Software chalks up corporate growth

City Software chalks up corporate growth

Reseller claims corporate business now represents 60 per cent of total revenue

Melbourne-based reseller, City Software, is claiming its corporate business division has chalked up 43 per cent growth in gross profits in the year to June 30.

City Software managing director, Lorenzo Coppa, said it had spent the past two years building up its corporate division, CSW-IT, as a separate unit to its consumer business. Corporate sales now account for about 60 per cent of the company's business, up from 40 per cent in 2006.

The 43 per cent year-on-year gross profit rise is on top of 60 per cent growth reported over the previous financial year, Coppa said. It now has 24 staff in its corporate business excluding management.

"Corporate is the area we are looking at growing - we have invested heavily in staff in the last five months and expect that to generate even stronger results," he said.

City Software has also been tweaking its consumer strategy and recently closed its two retail shopfronts in Sydney and one in Melbourne to put a stronger focus on online and call centre sales. The company appointed David Miller as general manager for consumer business at the beginning of the year.

Coppa said Miller had made positive structural changes which had helped it gain better traction in the consumer space. But despite seeing an increase in online sales, he admitted the consumer market was soft.

"Overall we expect [total] revenue to be flat or a bit behind on last year," Coppa said. "We have substantially reduced costs in our consumer area, so profitability has come up dramatically. Trading is looking good on the website and we've improved the call centre - we're looking for more results in the new quarter.

"We're hoping consumer and corporate will now grow at a similar rate."


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