Following a transformation from an IT reseller to technology integrator, Morse has posted a 4% rise in sales.

A central plank of the process was the purchase of Diagonal, a consultancy specialising in SAP oftware. The cost was £50.2m. In addition the market has stabilised with a positive outlook. On the downside the environment is very competitive.

Margins for the reselling business have been very tight. The aim is to bundle the hardware in with services.

Services now account for 40% of gross profit, up from 12% in 1999.