IT has been an amazing week, even in its own lightning-growth terms for telecoms group JWE of Pocklington - a week in which it declared a name-change to Convergent Communications Plc, announced an £8 million acquisition, forewarned of the off-loading of its 21 shops, posted up a year's figures showing profits nearly trebling to £1.34 million and predicted recruitment of 30 more office and customer support services staff before the end of the year. With only a pause to get his breath back, here TONY FARMER, chief executive of the town's biggest employer, reviews his dynamic company's past and projects the future.
WHAT an exciting time we have seen in the development of JWE over the past few months and particularly the past few days.
It has come a long way from the days of being a family business selling mobile phones and air time. The pace of technology means that the serious players are now in the business of supplying the whole spectrum of communications, from sophisticated voice and data systems to vehicle tracking technology.
The series of acquisitions, structural and board changes made by the company show that the group is now a serious national player, with its sights firmly set on the corporate and SME sector.
To be successful in the 21st century, companies like JWE have to be total communications providers, supplying everything from call centre technology to car phone kits with data transmission capability. This is also why JWE is changing its name to Convergent Communications PLC, reflecting its new positioning as a supplier of communications technology.
The acquisitions at JWE have been carefully chosen to bring in the skills to complement the company's existing strengths. Latest purchases have been on the basis of fixed line expertise, which is why JWE took on companies such as ADT (Advanced Digital Telecom) in Leeds and more recently, MNS (Managed Network Services) in Oxford, which also brought with it a service provision capability. Also gleaned from MNS is its old boss and now our new chairman, Bob Kennedy
Our most recent acquisition - for £8 million - is Crosshouse Holdings Limited, a leading southern-based supplier of telecommunications and data equipment, and related software and services.
It is the parent company of Sotel Limited, caCTI Technology Limited and Convergent Technologies Limited, in Hampshire, each of which are well known and established in their respective fields of PBX (private branch exchange or telephone switches), CTI (computer telephony integration) and data networks.
Sotel Limited has a significant research and development department, which develops state of the art software for call centres, among other things. Its major clients include the York-based Card Protection Plan, which, when it opens its new call centre in the city, will be using hardware and software supplied exclusively by Sotel.
Working with the corporate sector, rather than consumers, has changed the way JWE does business. We work with clients to offer solutions on the whole spectrum of their communications needs.
Emphasis is on service provision, with the group creating individual tariffs to fit customer requirements.
Our decision to move away from the retail sector was not sudden. The sector has changed dramatically in the last few years, with "pay as you go" becoming a very consumer-focused product gaining dominance and profit margins being slashed significantly.
The biggest profits from "pay as you go" are the preserve of the high volume retailers, with multiple sites and the ability to command extra support from the networks. Retail was never a high priority for JWE, which is why the company owned only 24 retail outlets in the North and Midlands and never looked to expand this side of the business.
However, the service provision side of the business is now big enough to absorb existing retail staff if they wish to stay with JWE.
Developing JWE as a service provider with billing capabilities, will provide a greater share of revenue and create a world-class company for the benefit of employees and shareholders. This doesn't arise just from acquisitions. It is also the result of substantial organic growth and increased expertise within the company.
All these developments mean significant changes at the Pocklington head office. The acquisition of MNS, which brought in new billing capabilities, means that the customer service operation is growing and there will be a new building to accommodate the extra staff. JWE is actively recruiting 20 people at the moment, but this figure is certain to rise as all the recent changes take effect.
Nothing stands still at JWE. The group is in negotiation to acquire similar businesses which will, when successfully completed, extend the group's geographic range across the whole of the UK and provide a much larger customer base into which to sell its full range of equipment and services.
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