Change of focus leads to massive profit rise (From Business in Dorset)

Change of focus leads to massive profit rise

7:00am Wednesday 1st July 2009

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Profit at Deverill, the IT specialist in Poole, has risen by 300 per cent.

Chief executive Joel Jervis explained that the company’s best year for four years was achieved as a result of concentrating on sectors that remain unaffected by recession.

Since it was established in 1979, the business has worked with clients in finance and property but, as they suffer in the downturn, it has switched away from these.

“We have focused on local government and education – we found areas where there was spending,” said Mr Jervis, who added: “Average orders are significantly larger than last year too.

“We have worked with Sherborne Girls School as well as Talbot Heath School and Kingston Maurward.”

The company was working on another contract with Kingston Maurward, he added.

“We have started off this year well ahead of budget.”

Deverill, which has attracted 50 new customers in the past six months, has experienced growing demand for its virtualisation service, whereby it helps customers reduce the number of servers they have, saving them money while also cutting electricity usage.

“The summer is looking good with a lot of contracts for schools in the West Country such as Bridgwater College in Somerset,” Mr Jervis said, adding that he was not putting all his eggs in one basket because he also has clients in the private sector – including Lush in Poole and Wightlink Ferries in Portsmouth, while he is also working with charities such as WorldVision in Milton Keynes.

Deverill, which moved to new offices at Upton Road, Poole, last week, focuses its efforts mainly in the south of England.

“The south-west is a lot less competitive than London so we have stronger margins and there is a lot of funding in the region too,” said Mr Jervis.

Deverill has no debt and “has always done due diligence on customers”, protecting it from poor payers.

While it has suffered no bad debts, it is finding that on average payments are settled in 48 days, instead of its stipulated 30-day terms. Last year Deverill, which celebrates its 30th anniversary in September, acquired IKM Network Communications Ltd, a large scale IT network design and installation company in Fleet.

It is still looking for other businesses to acquire.

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