Norwich mobile phone repairer Anovo confident of returns from major contract
Smartphone repairs company Anovo UK said it remained confident for the future despite its accounts dipping into the red.
The Norwich-based firm recorded turnover of £81.6m in the year to December 31, 2016 – a drop of almost 10% from the previous 15-month period.
Earnings before tax also fell from a £920,000 profit in 2015 to a £235,000 loss in 2016.
In a strategic review accompanying its latest filed accounts, Anovo – a member of the EDP/EADT Top 100 companies in Norfolk and Suffolk by turnover – said taking on a “major new contract” had resulted in high costs as it grew and restructured its facilities to accommodate the new operations.
The report from chief executive Kevin Coleman said this had put a strain on the company’s cash flow, but added that the benefits of the contract were expected to be seen from 2017.
Overall revenues for the year to date are in line with expectations while the business is maintaining a “profitable outlook”.
Mr Coleman added: “The environment remains challenging with margins due to inflationary pressures on overheads, however the overall level of business remains buoyant with significant contracts in the business having been retained and expanded during the year.”
In February Anovo, whose technicians repair, refurbish and recycle mobile phones, announced it had secured multi-million, multi-year deals with mobile networks including Vodaphone and Three.
The contracts led to the creation of 340 jobs, taking its total workforce to 1,300, and the company expects the deals to increase turnover by 15-20% and push its annual workload beyond three million devices.
Last year saw the expansion of its headquarters at Vulcan Road in Norwich to accommodate a bigger call centre, with space for 210 staff.
The company said costs had also been incurred through the closure and re-opening of its sites in Coventry and Manchester respectively.
Anovo is the national repairer for Samsung and also works closely with O2 Telefonica. Besides its UK sites, it has operations in continental Europe and Asia.
The company was bought by US-based Ingram Micro, a global device repairs and regeneration services provider, in March 2015.