Altered image pays dividends as TCA sees record returns
TCA Consulting, part of the Terence Chapman Group, has had record returns after changing the focus of its consulting work during 1996.
“We thought we would go into capital markets, IT strategy and focus on doing infrastructure studies for banks,” said Eurfyl ap Gwilym, managing director of TCA Consulting and a director of the Terence Chapman Group.
“That is where we’ve got our return and that is what is behind our growth.”
The firm’s achieved profits grew to u1.3m in the year ending August 1996.
Turnover increased by 48 per cent to u6.4m in 1996.
“If you talk to other consultancies they will agree that is a very good level of profitability,” said Gwilym. “The only problem now is that we are resource-bound: we have lots of jobs but a lack of consultants to do it.”
But Gwilym aims to continue growing the firm organically, and take on additional consultants. He expects revenues over the next year to almost double to u10m.
“The projected revenue for 1997 is u10m, which is 60 per cent growth,” he said. “And if we keep going at 60 per cent we won’t need to acquire any consultancies.”
The firm has embarked on two major telephone banking projects. “One or two telephone banks are trying to launch themselves this year. But it is quite a sensitive area because so many of these firms are outside the traditional retail banking sector and aim to compete with the traditional retail banks,” he said.
The Terence Chapman Group’s other two divisions TCA Synergo and TCA Syntec also increased turnover and profits. Synergo’s profits were u1.1m, Syntec’s u526,000.