UXC TARGETS U.S. GROWTH

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Bob Scott reporting in his weekly Insights column on UXC focus on growing their US based revenues for 2015.

UXC wants to grow its business in the United States to $78 million a year. That’s a nice round $100 million Australian as outlined this week in remarks made by managing director Cris Nicolli during a webcast for earnings for the first half ended December 31. Nicolli said revenue for this country for the half was about $13.3 million ($17 million Australian) which would annualize to roughly $26 million. For the half just ended, net profit after tax was about $3.9 million, an increase of 81 percent from a year earlier. Revenue for the half was about $254.1 million, up 9 percent over a year earlier. Nicolli said that the former Tectura North American business, acquired in December 2013, had been so integrated into the business that executives could not easily determine organic growth, but that it was in the range of 17 percent to 20 percent. The company operates its ERP business in the U.S. through UXC Eclipse. Nicolli also said Microsoft will likely make UXC, which derives about 2 percent of its revenue through the retail market, one of two or three global retail resellers worldwide. The executive outlined the company’s changing approach to business that involves moving away from smaller transaction-based clients to “higher-margin annuity type services” that involve longer-term relationships and higher-value adds. Nicolli said the company is moving away from lower-margin products, but did not identify those.