AN expanding East Yorkshire company is approaching its goal of becoming the UK's biggest telecommunications supplier of its kind, its chief executive has declared following a big take-over announcement.
Bosses at Pocklington-based JWE Telecom plc are even proposing a change of name to reflect its status as a major player in all areas of communications, in addition to the mobile sector where it first made its mark.
Becoming a "one stop shop" for all business customers' telecommunications needs is seen as the key to JWE's future.
Illustrative pro forma figures have been prepared which show that the group, which may soon be known as Convergent Communications plc, will have a £50 million turnover if two multi-million pound acquisitions go ahead as expected.
JWE has announced that it has conditionally agreed to acquire the entire issued share capital of Direct Voice and Data Ltd (DVD), which also operates in the telecommunications and data market, in a £5.1 million deal.
DVD is based in Hayes, Middlesex, with regional offices in Daventry and Dublin.
Its acquisition is conditional upon the success of a proposed £8 million take-over of Crosshouse Holdings Ltd, a leading supplier of telecommunications and data equipment, and related software and services.
But while both deals are conditional upon shareholder approval, with meetings due to be held next month, JWE's chief executive Tony Farmer was confident all would go smoothly.
"We have completely restructured and re-engineered the group's business and operations.
"From being a mobile specialist turning over about £30 million we are immediately doubling our business and turnover, and also specialising in fixed line based and data products and related products," he said.
"We are still very strong in mobiles, but we have acquired businesses that grow around and complement that."
JWE chairman Bob Kennedy said: "Following a major review during 1999 the group refocused towards becoming a one stop shop for business customers' mobile, fixed lines and Internet communications services and equipment needs.
"JWE acquired Advanced Digital Telecom Ltd in July 1999 and MNS Ltd in April 2000 as the first part of this strategy, and we believe that the acquisitions of Crosshouse and DVD now put JWE well on the way to fulfilling the remaining elements.
"Based on the last full year's reported figures these acquisitions increase the size of JWE's activity in PBX and data equipment and related software more than fivefold, to just under £20 million annual turnover.
"They also extend the group's engineering and sales support for fixed line data and telecoms solutions nationwide to satisfy the needs of multi-site corporate customers and broaden the group's geographical base."
Mr Farmer said JWE had a strong mobile customer base, and the acquisitions had their own fixed line customer base. They hoped to sell the enlarged group's product range to both sets of customers.
"It's very much a case of two plus two making rather more than four," he said.
The acquisitions also took the group towards having a full UK national presence, as well as a position in Ireland.
"It makes us, in terms of telephony equipment, the biggest independent supplier in the UK that's not either run by a telephone network or a manufacturer," added Mr Farmer.
The group would now grow organically rather than through acquisitions. "We have got the tools in place now to do that. The key strategy was to acquire a UK presence - these acquisitions allow us to do that.
"Now we build that up, to get the best possible products and services out to our customers on a UK-wide basis.
"It gives us a first-class opportunity to develop a leading telecommunications business."
He hoped that the new group would continue to have good relations with York-based CPP Card Protection Plan, which was a Crosshouse customer.
PICTURE: JWE chiefs Tony Farmer (left) and Bob Kennedy: confident
that ever-expanding firm is set to be biggest independent
supplier of telecommunications equipment in UK
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