[Intro/mission statement]
Our goal is to be a market leading full service provider of B2B internet based digital solutions
altodigital believes that while small and medium sized enterprises want the benefits new technology and particularly the internet can bring to their businesses, few have the knowledge or time to implement a successful integrated technology strategy. To bridge this gap, altodigital focuses on delivering the internet based digital solutions small and medium sized enterprises are looking for.
Total solutions – from fully networked computer systems, to websites, to online office supplies, to broadband web access
Real understanding of small and medium sized enterprises gained through serving over 30,000 customers
Network of 12 offices and over 650 staff to develop, manage and implement bespoke solutions
Strong focus on face to face contact with customers from the initial sale to ongoing support and maintenance
Close integration and fit of products and services across the group which naturally lends itself to cross selling opportunities
Emphasis on using the latest technology to develop innovative solutions
Chairman’s statement
The last year has seen enormous change and continued growth in our businesses, driven by our decision to capitalise on the internet revolution.
During 1999 the Board recognised that, following three years of acquiring many complementary digital solutions providers, altodigital was in a perfect position to expand its offer to encompass internet solutions ideally suited to small and medium sized enterprises (SMEs).
The group now provides internet based software, bespoke web design and ecommerce solutions for SMEs and is, through altohiway, a full service corporate ISP offering enterprise networking and sophisticated web development services. altodigital is also one of the largest distributors and servicers of reprographic, imaging and IT hardware in the UK.
The Board continues to search for suitable acquisition opportunities in the UK, Europe and the US to expand the customer base and increase the range of internet based solutions for SMEs.
The group’s strategy is to:
Expand rapidly its web design and ecommerce division by targeting SMEs
through a multi-channel sales strategy including direct sales.
Exploit opportunities to cross sell the expanded range of products across the
group’s customer base.
Introduce new products to take advantage of internet developments, such as
ASP services, which are likely to result from the widespread availability of
increased bandwidth, notably through ADSL.
Expand and develop its altooffice.com portal to offer SMEs a broader range of office products and consumables online.
Continue to grow its digital products division through acquisition and thereby increase the number of contracted SME customers to whom the group’s products and services can be marketed.
Trading results
Turnover in the third full year of trading was £29.4m (£18.9m for year to 31 March 1999). Operating Profit before goodwill amortisation and exceptionals was £0.32m after incurring development costs of £2.22m for altodigital.com (1999: £2.15m). These results reflect the transition altodigital is making to embrace the new economy.
Acquisitions
During the past year altodigital or its subsidiaries made the following acquisitions:
April 1999 Boston 2000 Limited (digital imaging distributor and servicer)
July 1999 Alger Brownless and Court companies (digital imaging and networking provider)
October 1999 Trade and assets of First Copy Inc. (digital imaging and network provider)
February 2000 OES Limited (digital imaging distributor and servicer)
March 2000 Hiway Communications Limited (provider of business internet solutions)
GWR Group plc
On 30 March 2000 Ecast Ventures, a wholly owned subsidiary of GWR Group plc, subscribed £7m for 67496 ordinary £1 shares of altodigital limited. At the same time Ecast Ventures entered into a partnership with altodigital.com whereby altodigital.com became a media partner of GWR and agreed to invest £0.5m in technology solutions specifically to enable Ecast Ventures to develop a local portal.
Board changes and profiles
On 3 May 2000 Sir John Craven joined the Board as non executive chairman and we welcome his knowledge and profile which will help the group in its next stage of development. Sir John is a former member of the board of managing directors of Deutsche Bank AG and chairman of Deutsche Morgan Grenfell Group plc. He is currently chairman of Lonmin plc and is a non executive director of Reuters Holdings plc and Robert Fleming Holdings Limited.
On 3 May 2000 John Mills was appointed managing director of altodigital limited. John joined in August 1999 to head up the development of altodigital.com. John has over twenty years’ experience in the high technology networking and internet industries. In the early 1990s he was responsible for managing the business of global networking products leader 3COM. In 1996 he founded Online Networks, the first UK internet retailer.
On 3 May 2000 Richard Sharpe was appointed to the Board as chief technical officer. He will be responsible for the strategic technical direction of the group. Richard has had previous roles with IBM, Texas Instruments, Rapid Recall, Celdis and Intel. He founded Compass Computer Group in 1983 which was sold to 4Front Inc. in 1995. He has been managing director and founder of Hiway Communications since 1996.
On 3 May 2000 John Ryan and David Shilingis resigned from the Board. We are very grateful for their efforts. David Shilingis continues to be in charge of sales in a non board capacity.
Employees
altodigital now employs over 650 people and without their help and support the group could not succeed. I would like to thank them for their efforts and hope that altodigital will continue to go from strength to strength.
Paul C O’Neill retired as chairman upon my appointment. Paul has been instrumental in leading altodigital to its current stage of development and the Board is extremely grateful for all his advice over the last three years and thank him for his efforts. We are delighted that Paul has decided to remain a Board member.
Group structure
[Group Structure Diagram]
The group has four divisions: altodigital.com, altohiway, altooffice.com and altodigital. Together they are geared to developing a range of solutions to help small and medium sized enterprises optimise and integrate new technology.
altodigital.com.
Launched in September 1999
Offers a variety of website options, from one page sites through
to sophisticated ecommerce enabled sites with hosting and domain name
altodigital.com’s in-house web design service ensures that every site has an individual feel
Face to face consultancy with all sites built for customers
altohiway
Established in 1994
Operates its own dedicated full corporate ISP facility
Offers a comprehensive range of internet based business solutions, including installation, training, ongoing support and maintenance
Develops bespoke websites with full back office integration
Uses some of the most innovative products available
altooffice.com.
Launched in April 2000
One of the UK’s most extensive B2B portals
A one stop shop where businesses can buy, arrange delivery and obtain warranty packages for all kinds of products – from computers to paper clips
Plans to expand the range to over 100,000 online products and services
altodigital
Established in 1997
Nationwide coverage through a network of 12 regional offices
Provides total office solutions – from digital reprographics to imaging and IT hardware
Ongoing support and maintenance for over 24,000 customers
altodigital.com overview
Websites for small and medium sized enterprises
Currently worth $145bn, the worldwide B2B ecommerce market is set to grow to a staggering $7.2 trillion by 2004*. A major factor behind the growth is the huge number of small and medium sized businesses who, for reasons of cost and want of resources, have yet to take advantage of the internet. It was to provide this sector with a cost-effective, bespoke presence on the web that altodigital.com was established in September 1999.
altodigital.com offers a range of options, from a four page brochure site to a fully functional ecommerce site for over 250 products. All the sites are built and designed by an in-house team of trained web developers using customised Intershop technology. Customers can update their sites through their own secure back office - choosing from over 250 backgrounds, changing text, adding images and viewing site statistics.
altodigital.com extends its services to offer comprehensive after sales support once a site has gone live. New customers are automatically entered into the altodigital.com trading zone, an online directory spanning antique dealers in Aberdeen through to wrought iron workers in Worcester. The trading zone provides customers with instant, free marketing and access to a growing community and a potential new customer base.
altodigital.com has also created business and leisure zones which offer preferential rates on a range of online business and leisure services.
The company has also developed a Business Starter pack designed to provide small businesses with all the technology they need to run a website. The pack includes an internet enabled PC which is fully installed and serviced, together with all the peripherals required to update images and respond to trade online.
Many small and medium sized companies lack the resources to develop an internet presence. altodigital.com’s experienced team of internet consultants provides personal consultation in order to develop a full understanding of customers’ requirements and recommend the best solutions.
Growth through this channel has been tremendous. However in order to further capitalise on the opportunities provided by the internet, altodigital.com has developed a unique partner programme which allows partners to market a branded web service to their customers. The benefits of using third party channels to market altodigital.com products and services are significant and allow the group to reach a wider audience. The company has already partnered with GWR, Europe’s largest independent radio network, who will be marketing websites through their local community portal koko.co.uk.
*Gartner Group
[Case study]
Traditional craft transformed by new technology
Bairstow Manor Pottery is a family business founded in 1938 in Hanley, Stoke-on-Trent. The company produces collectible pottery for enthusiasts across the globe.
The company first went online in September 1999. "Our original website enabled us to promote our products to potential customers across the globe," says Roger Bairstow. "Very soon it became apparent that many customers wanted to buy online, so we decided to provide a fully functional ecommerce site."
After reviewing the product offerings of several ecommerce companies, they chose altodigital.com to design and build their new site. "altodigital.com provided us with a cost-effective fully functional website that is easy to update with new products. It even allows us to track customer purchases via an easily accessed database."
"Our website is central to the company’s growth. For minimal cost, we have made our products available to collectors across the world - something that I could not imagine us doing just a year ago."
altohiway overview
Comprehensive internet based business solutions
Although websites can provide a tangible business advantage, they remain a small part of a much greater online equation. Companies can leverage a range of opportunities, including those provided by application service providers (ASPs). Through altodigital’s ASP, businesses will be able to rent software packages such as the standard Microsoft Office Suite or more complex Customer Relationship Management Systems. It will also be possible to back-up data using off-site storage facilities. Providing and owning these online business applications is key to long-term customer satisfaction and retention.
To maintain its position at the leading edge of the industry, altodigital acquired Hiway, one of the top five UK ISPs. Established in 1994, altohiway, as it is now called, operates its own dedicated internet facilities and offers a comprehensive range of business solutions using some of the most innovative internet and networking products available.
altohiway services over 2500 businesses in the UK with over 15,000 active connections. It hosts over 1000 web sites and approaching 4000 domains names. Businesses choose altohiway for its excellent understanding of customer requirements and for quality and reliability. It is one of the UK’s top five ISPs, as measured for quality by Internet Works magazine. The internet connectivity provided by altohiway is underpinned through its own multi-megabit triangulated network with Points of Presence in London, Manchester and Newbury.
altohiway’s development of high-end websites for clients such as Ducati Clothing, the Wadworth Brewery Company and Gainsborough Stud Management complements altodigital.com’s web services. The altohiway team of developers provides database integration, intranets, extranets and bespoke e-commerce solutions - a natural upgrade path for many of altodigital.com’s customers.
altodigital.com has integrated altohiway’s product portfolio to offer a range of business connectivity products, ranging from Netconnect, a single user dial up product, through to Netmanager, which offers full business network connection with email and internet managers. The combined use of web and internet connectivity solutions provides customers with faster and more secure connections to their website and email services.
Customers have a range of connectivity options, from a traditional analogue connection to leased lines. An ADSL service is planned, initially with bandwidth at up to 0.5Mb and in the future at speeds of up to 2Mb. This will allow customers to do more in less time by downloading and uploading data at much quicker speeds via an ‘always on’ connection charged at flat rates.
[Case study]
A ground breaking digital solution hits the road
A pioneering new service using internet based technology promises to revolutionise the road haulage industry by creating a new standard of cost efficiency, tracking and reporting.
The service, which was launched in April 2000 by Doncaster based Pallet Network, provides logistical information for the 33 road hauliers that subscribed to it in its first month.
The concept of networking pallet loads started in the early 1990s but the paper based system was cumbersome and unreliable. The new digital system, developed by altohiway, allows haulage firms to track deliveries in real time. Road hauliers using the Pallet Network are connected via a PC to a server housed at altohiway in Newbury that allows subscribers to track and book orders and monitor deliveries across the UK.
Jim Scanlan, managing director of the Pallet Network, says: "Everyone benefits. Hauliers get maximum cost savings by ensuring delivery vehicles are operating as near to their load capacity as possible. It also cuts out unnecessary journeys so there are environmental benefits, and with current fuel prices these savings are significant. Taking into account road works, restrictions and special delivery instructions our service efficiency levels exceed 99 per cent thanks to this new technology."
altooffice.com overview
Cutting costs and increasing efficiency through eprocurement
For businesses, traditional methods of procurement involve a complex, paper intensive request, approval and order process with high administrative costs and few economies of scale. A combination of cheaper prices and more efficient procurement systems makes buying online much more cost effective and whole lot easier.
altooffice.com, launched in April 2000, is poised to offer great savings and convenience in the procurement of office services for both existing and new altodigital customers. A massive online hypermarket, altooffice.com offers businesses a one stop shop for all office requirements. They can purchase, arrange delivery and obtain warranty packages for all kinds of office products - from digital output and imaging services, printers, fax machines and computers to everyday office consumables. altooffice.com plans to supply up to 100,000 products online with savings of up to 30% over traditional offline suppliers.
altooffice.com differs radically from other online services as it draws on the national sales and distribution infrastructure of altodigital. In a classic ‘clicks and mortar’ operation, this gives altooffice.com customers access to additional support from a 200 strong sales force and a network of 12 regional offices.
altodigital is in a unique position to further build on its long term relationships with key suppliers such as Sharp, Ricoh, Nashuatec,Toshiba, Minolta, Muratec, HP and Canon – using its buying power to pass on to its customers a wide choice of services and savings.
altooffice.com is an ideal progression for many of altodigital’s customers. As first time internet users, they can enjoy the savings on products and lower ordering and billing costs that eprocurement through altooffice.com gives them.
Customers will be brought to altooffice.com through cross marketing to existing altodigital customers and direct altooffice.com acquisition as a result of both online and offline marketing, and affiliate marketing via major internet properties.
altooffice.com plans to expand not only its range of traditional office products and consumables but also a range of office services including telecoms, utilities and financial services.
[Case study]
20% savings from hassle free online purchasing
Quality Vehicle Contracts Ltd (QVS), a motor vehicle leasing company based in Tunbridge Wells, was one of the first businesses to benefit from altooffice.com. Since starting to order office equipment and supplies in April 2000, it has gained both time savings and cost efficiencies. altooffice.com is now their preferred supplier.
"We are a fast moving car leasing business founded on an ethos of providing the best possible service to our customers," says Steve Mercer, managing director of QVS. "To maintain our high standards, we rely on quality suppliers that deliver on time and within budget. altooffice.com has already enabled us to save 20% on our monthly stationery order."
Thanks to altooffice.com, QVS can take advantage of special offer discounts that, until recently, were only available to larger companies. As Steve says: "By purchasing online, the office manager saves time and the company benefits from the extensive variety of products on offer."
altodigital overview
Total office solutions; local service and support
altodigital offers small and medium sized enterprises total office solutions – from digital reprographics to fully managed IT networks, data storage and videoconferencing – together with local service and support.
Established in 1997, altodigital has grown rapidly by acquiring and integrating complementary businesses to create one of the UK’s largest companies in its field with a nationwide network of 12 regional offices. As a result, customers benefit from the best of both worlds – the expertise, efficiencies and buying power of a national organisation plus the personalised service and support of a local supplier.
Strong relationships with many of the world’s leading manufacturers of digital equipment, including Sharp, Ricoh, Canon and Toshiba, mean that altodigital can offer its customers comprehensive services – everything they need to create the best office solution for their business.
Through serving over 24,000 customers altodigital has built up an excellent understanding of the needs of small and medium sized enterprises. This know how, combined with the company’s breadth of services and its network of local offices ensures that altodigital can deliver exactly the solution a customer is looking for – from implementation through to ongoing service and support.
To make it quick and easy for customers to place orders for services and equipment, altodigital provides a dedicated online portal: altoservice.
altodigital plans to continue expanding, through both acquisitions and organic growth, in order to build on its position at the forefront of total office solutions for small and medium sized enterprises throughout the UK.
[Case study]
Saving money, improving service and increasing productivity
Anglo French Adjusters (AFA) Limited, insurance claims adjusters, and Pierre Thomas and Partners, legal partnership, are two West London businesses sharing the same office space that have been supplied by altodigital for over three years.
Simon Ball, partner of Pierre Thomas, explains why altodigital is a trusted long-term supplier to both companies: "We started off by placing orders for reprographic equipment and fax machines and were very impressed with the after sales service. Later we needed bespoke software for insurance claims and turned to altodigital to provide a total integrated digital solution for both companies."
AFA and Pierre Thomas have found that the upgraded office system has improved client service, maximised office storage space and helped staff to work more productively with the new office IT network.
"altodigital keep us at the cutting edge of office technology with cost effective digital solutions for our business."
altogether better for small and medium sized enterprises
New technology, particularly the internet, represents a vast and as yet largely untapped reservoir of opportunities for the UK’s small and medium sized enterprises. No company is better placed to help these businesses make the most of the opportunities than altodigital.
By creating a bespoke web presence, small and medium sized enterprises can reach out to a worldwide audience of existing and potential customers – not only making themselves known but also selling online.
By taking on board comprehensive internet based business solutions, from ecommerce with full back office integration to the new generation of ASP services, they can radically improve the way they do business.
By buying all the office products and services they need online they can cut costs and increase efficiency.
By securing total office solutions, from the latest digital reprographics to fully managed IT networks, they can turn new technology to their advantage.
altodigital can help small and medium sized enterprises capitalise on not just one but all of these opportunities.
Through its family of complementary businesses, its nationwide network of regional offices, its real understanding of the technology and the market, and, above all, its commitment to personalised customer service, altodigital delivers the solutions small and medium sized enterprises are looking for.
