Procurian profits rise by $5.1 million

24 February 2012

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24 February 2012 | Adam Leach

Procurement outsourcing company Procurian - previously known as ICG Commerce - reported pre-tax profits of $22.2 million (£14.1 million) for 2011.

According to the group’s parent company ICG - which also operates the public sector communications technology firm GovDelivery and the investment technology business InvestorForce - the increase in profits was driven by a marked increase in revenues for the firm in the final quarter of the year. For this three-month period, revenues rose by 19 per cent to $31.1 million (£19.7 million).

But while profit grew at Procurian, whose customers include Elizabeth Arden, Doosan Infracore and Whirlpool, parent ICG reported a significant overall fall. It reported a net income for the year of $27.6 million (£17.5 million) compared with $46.6 (£29.5 million) million in 2010.

Discussing the outlook for the next year, Walter Buckley, CEO at ICG, said: “As we look to 2012, growth in the first half of the year will be impacted by reduced spend at a limited number of clients. That said, we are encouraged by the later stage opportunities within our companies’ pipelines, which we expect to drive accelerating growth in the second half of the year.”

ICG forecast profit in the range of $16 to $18 million (£10.1 to 11.4 million) for 2012. At the end of 2011 it completed the sale of StarCite, the meetings and events management business, to Active Network.

Last week Procurian changed its name from ICG Commerce. It was the second procurement outsourcing company to do so this month, with the transformation of buyingTeam into Proxima a week earlier.

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