Few clouds on the Horizon for Dublin technology group

Dublin-listed technology group Horizon has reported a 30 per cent jump in profits for 2006, boosted by a string of successful acquisitions.

Horizon sold off its distribution business during 2006 to concentrate on the higher-margin enterprise solutions market. Sales from its continuing operations soared to €257.9 million last year, almost double 2005 levels, while profit after tax climbed from €4.27 million to €5.55 million.

The group attributed the marked uplift in revenue and earnings to a combination of organic growth and "good contributions" from its new acquisitions, specifically British company EquIP, and EPC and WBT in Ireland.

Another contributing factor to the group's strong performance in 2006 was the development of a "channel partnership" with IBM. The group intends to extend this partnership into Ireland this year.

Over 75 per cent of its revenue was generated in the UK last year, and Horizon anticipates that this will increase even further given the size of the potential market. It will also continue to monitor the IT market in Ireland and Britain for potential acquisitions.

Chief executive Gary Coburn said yesterday that the group was well positioned to deliver continued growth in the future. Chief financial officer Cathal Ó Caoimh added: "With well-balanced operational and financial structures, relentless focus on efficiency and performance and a strong market outlook, Horizon enters 2007 with a solid base and good momentum."

NCB Stockbrokers upgraded its 2007 earnings estimates for Horizon yesterday on the back of the "solid" set of results.