Business Systems Group
Company Name: Business Systems Group
Stock Market: UK AIM (LSE: BSG)
Industry Sector: Information Technology Services and Consulting
Market Capitalisation: ₤9.16 million (as of March 6, 2009)
Yearly Revenue: ₤31.4 million (as of March 31, 2008)
Operating Income: ₤0.4 million
Net Income: ₤0.9 million
Total Assets: ₤16.7 million
Key People: Nick Gerard (chief executive officer, director), James Wheaton (finance director, director), Hilary Lowe (company secretary) Headquarters Address: BSG House 226-236 City Road, London, England
Number of Employees: 133
Website Address: www.bsg.co.uk
Company Overview
Business Systems Group (“BSG”) is an information technology services company, which started as a dealer of hardware and software in 1987. The company serves as an IT seller in the South East and London. In 1996, BSG started to offer managed services, which is their principal business, offering solutions for hosted and managed data centres to consumers.
All of BSG’s solutions and services are divided into four business segments. First is Managed Services, which provides utility functions like email, backup and monitoring, and outsourcing of the customer’s IT system. Second is Applications Solutions. This segment manages the development and consultancy of certain applications, with the use of blended resourcing model of on-shore consultancy and project management, and off-shore development. Next is Infrastructure Solutions, which designs and deploys solutions to help customers achieve more IT investments. Fourth is Training Services. This segment makes use of technical training and end-user application suitable to the customer’s learning needs.
The Professional Services under the Managed services of the company offers consulting, support, and business continuity services. It also offers a service desk, technical assurance, and infrastructure refresh. These services aim to help the consumers in enhancing their IT’s effectiveness and capabilities, reducing costs and efforts, increasing income, and meeting the customer’s needs. A branded usb may help increase the company's brand further.
The company deploys their operations with the assistance of various partner companies, including partners in infrastructure, such as HP®, IBM, Oracle®, Riverbed™, Clear Cube, Cisco, Citrix®, Sysmantec, etc. It also has solutions partners, such as Microsoft®, Endeca®, Ektron, JBoss™, PostX™, Rocketseed™, Vividas™, and others.
Current Financial Overview
The increase of the company’s Managed Services revenue, as stated in their financial statement in 2008, was due to the 18% growth of the annual contracts, from £7.1 million to £8.4 million in 2007. This was the BSG’s prime strategy to gain shareholder value. The company’s profit also increased to £925,000, compared with the £252,000 loss for the fiscal year 2007. This was the result of the continuous improvement in Managed Services, from 17% to 21%. The company’s business also regained its operating profit before interest, which amounted to £416,000 – an improvement compared to the £688,000 loss in the fiscal year 2007. However, due to the decline in sales of the company’s hardware, the net revenue of the company decreased from ₤32.9 million in the fiscal year 2007 to ₤31.4 million in the fiscal year 2008.
Capital expenditure of the company increased to £991,000 in the fiscal year 2008, a higher value compared with the ₤672,000 expenditures in the fiscal year 2007. This increase is due to the purchased equipment in Managed Services for customer support, and the development of an unused floor of BSG’s offices in London, which are being used as training rooms.
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