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IT SERVICES SUPPLIER ANNOUNCES RECORD RESULTS

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ITNET, supplier of IT and business process services to local government, has announced a 24% increase in turnover t...
ITNET, supplier of IT and business process services to local government, has announced a 24% increase in turnover to£130.8mn. Operating profit is up 33% to£10.1m.

The company, whose customers include Enfield LBC, Birmingham City Council and Westminster LBC issued preliminary results for the year ending 31 December 1999.

Financial highlights:

- Turnover up 24% from£105.7m to£130.8m

- Operating profit up 33% from£7.6m to£10.1m

- Earnings per share up 55% to 10.76p (1998: 6.94p)

- Forward order book in excess of£300m

Business highlights:

- Strong growth across all markets

- First ASP (application service provider) order signed

- 50% growth in desktop services

Announcing:

- Partnership agreement with Infobank to build e-procurement service for local government

New orders totalling£187m were signed in 1999 contributing to the highest ever order book for ITNET. Its leading position in the public sector market was maintained with revenue growing 32% to£71m, accounting for more than half of the company's turnover.

At£60m, the 10-year contract with the London Borough of Enfield won in May is believed to be the largest IT outsourcing deal in the local government sector. Other new contracts included Ealing LBC and Nottingham City Council.

Business process services (BPS) accounted for 40% of ITNET's total revenue from the public sector.

In May 1999 ITNET acquired Technosys, a firm with e-commerce and knowledge management skills. Already this year it has acquired IT management consultants French Thornton Partnership.

ITNET also agreed a partnership with e-procurement specialists Infobank to licence its 'InTrade e-Hub'. The company will launch an e-procurement service later this year to reduce purchasing costs for local government and suppliers. Local government places 26 million orders a year and spends at least£4bn on high volume, low value items.

ITNET chief executive Bridget Blow said: 'The demand for IT and related services remains very strong. The outsourcing market is expected to maintain recent growth rates and we are well placed to take advantage ofemerging new technologies and service areas.

'There was some slowing down in project work towards the end of 1999 as the impact of Year 2000 spending was felt. Project work is less than 10% of our business so it had limited impact for us.

'As we compete for larger contracts in a growing and changing marketplace we look to the future with continued confidence.'

For the full set of ITNET's preliminary results see www.itnetplc.com

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