Calyx's first-half profits grow 61%

Profits at listed telecoms and IT supplier Calyx more than doubled during the first half of the year, the firm said yesterday.

Calyx reported that turnover in the six months to the end of June grew 61 per cent on the same period last year to €29.3 million from €18.2 million. Operating profit jumped to €3.1 million from €1.3 million over the same period, while earnings before tax and write-offs were up 169 per cent at €2.6 million from €1 million a year earlier.

Profit after tax doubled to €1.2 million from €600,000. Gross margin strengthened to 39.6 per cent, up from 36 per cent in the same period last year. Adjusted earnings per share (after write-offs for goodwill and exceptional items) grew 64 per cent to 4.87 cent from 2.97 cent in the first half of 2005.

Its activities generated €2.8 million in cash during the period, compared with an outflow of €800,000 in the first half of 2005.

During the first half of 2006, Calyx, which is listed on the Irish and London stock exchanges, agreed to buy two rival companies for a total of €45 million. In March, the company bought Entropy, a Dublin-based IT security specialist, for €4.95 million - €3.72 million in cash and the balance in Calyx shares.

In June it acquired British network specialists, the Matrix group of companies, for an agreed €40.5 million - €33.5 million in cash, €2 million in Calyx shares and the remaining €5 million to be paid between the end of this year and May 2007.

To pay for Matrix, Calyx issued 25 million new shares to raise €26 million. It also agreed new debt facilities with its banks giving it access to €25 million over the next eight years.

Commenting on the results, Calyx chief executive, Maurice Healy said: "The acquisition of the Matrix companies has firmly established Calyx as a force in the UK networked IT services market."

Calyx was admitted to Dublin's smaller and developing companies market, the IEX, and to London's Alternative Investment Market (AIM), in June.