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 Onesource – New Zealand’s largest privately-owned office technology group – has posted strong growth in revenue and profit for its first year of operations following a management buy out from Hanover Group in 2005.Now owned by its executive management team and Archer Capital – one of Australia’s largest private equity investment funds - Onesource is setting its sights on both the Australian office technology market and New Zealand growth opportunities.
Onesource chief executive Evan Johnson said 2006 had been a year of consolidation: “We’ve solidified our leadership position with our New Zealand operating companies of Konica Minolta and Cogent Communications and made our first foray into the Australian market with the purchase of Danka – Australia’s largest independent distributor of printer/copier hardware and software.”
Also during the year Onesource purchased the Leasing Solutions business from Hanover Group, gaining full control of the finance and leasing services which play an important part in providing flexible, competitive ownership options for customers.
“2006 has seen us put in place the building blocks for our growth over the next three years, and we are forecasting substantial revenue growth over the next two years,” Johnson said. “In addition, we have the strong support and financial backing of Archer Capital to grow through acquisition as market opportunities present.
“We have a clear vision of who we are and what we want to be. Our aspiration is to be Australasia’s leading supplier of integrated office technology solutions. We will achieve this not by trying to offer all the technology used by a modern office, but rather through focus on leadership in our chosen market segments of business copying and printing, integrated voice and data solutions, and office equipment financing.
“We will continue to focus on achieving strong synergies in our group operations, for example, through back office administration, office locations, service and finance. At the same time we’ll maintain clear separation in sales and marketing as we continue to build our Konica Minolta and Cogent brands.
“From a cultural perspective we will remain a regional company, with strong ownership by our management team.
Konica Minolta highlights during 2006
Onesource Group general manager of marketing Steve Spain said the Konica Minolta business produced a record sales result, securing a leadership position in the New Zealand colour digital printing market. Other strategic developments included launching into the high-end black and white digital printing market. These achievements won Konica Minolta New Zealand the top global distributor award by Konica Minolta Japan, for both colour and production printing.
“Our sales of colour printer/copier devices more than quadrupled during the year. This is the highest growth segment of the digital printing market. “We now service over 30,000 New Zealand businesses ranging in size from the smallest office right up to the country’s largest companies and national organisations – such as large Government departments with up to 700 copier/printers installed,” Spain said.
Cogent Communications highlights during 2006
Onesource Chief Operating Officer Ross Jenkins said Cogent solidified its position as the largest independent New Zealand supplier of integrated voice and data solutions outside the major Telcos. Revenues grew to more than $30 million with a solid profit result.
“We now sell more phone systems than any other vendor in the market outside the major Telcos and we are the largest independent seller of telephone and voice over IP solutions in New Zealand – reselling the worlds leading brands such as Nortel, Alcatel, NEC and Samsung. We are also the only independent vendor with a truly nationwide sales and support network with 200 staff at 10 locations.
“The most significant development during the year was our purchase of the telephone business of GDC Communications which we have integrated within our existing business and brand.
“Our strategic focus on VoIP and our investment in these emerging technologies over the past few years has begun to pay major dividends. Convergence of voice and data systems is now a reality, and much of our growth has been from the supply of VoIP capable phone systems. Historically we have been a midrange supplier of this technology, but during the year the launch of Alcatel Business Suite and Nortel Enterprise Solutions armed us with highly competitive solutions aimed at the largest companies formerly the exclusive preserve of Telecom. Nortel has the largest installed base of enterprise level solutions in New Zealand and Cogent is now the only authorised supplier of these solutions outside of Telecom,” Ross Jenkins said.
Major venture into Mobility
Cogent has just recently announced a further addition to its range of solutions with the signing of a dealer agreement with Vodafone.
This agreement enables Cogent to truly deliver complete telecommunications solutions across both fixed and mobile networks. Cogent can advise, sell and deliver to customers a completely integrated solution across voice and data, fixed and mobile, in such a way that it maximises current investment in infrastructure whilst delivering the full benefits of a modern mobility platform.
Leasing Solutions is strategic to service mix
Onesource CEO Evan Johnson said a key development during the year was the buy back of Leasing Solutions, which has a long history of providing customer finance and leasing packages to Onesource customers.
“The vast majority of customers finance through Leasing Solutions. The tight integration of Leasing Solutions with our operations is critical to the flexibility of our solutions. It means, for example, we can offer customers a cost per copy model and the ability to upgrade add new systems in a way which enables them to apportion the cost according to users and operate their systems as a business expense rather than a capital cost.
“We are now in the extremely fortunate position of being able to offer our New Zealand customers the best products, at the best price, with the best service. Our size and our very large group customer base enables us to resell the best international technology at competitive pricing. Our ownership of Leasing Solutions means we can offer highly sophisticated and flexible financing. And our 200-strong nationwide service organisation, supported by the latest remote servicing and diagnostic technology, means we can offer the very highest levels of service right across the country.
Acquisition of Danka Australia heralds start of regional growth strategy
With the acquisition of Danka – Australia’s largest independent supplier of office equipment – we have a strong foundation on which to build the Australian arm of our business. Danka resells leading brands such as Konica Minolta, Ricoh, HP and Samsung. Danka has market share of around 5-6 percent and is the only independent reseller with a national ‘footprint’. Danka has a solid management team in place and can be run as a discrete business unit, with the opportunity to add the elements Danka needs to emulate our New Zealand promise of leadership in Product, Price and Service – through acquisition as well as internal growth,” Evan Johnson said. |