IT Support and Hosted Services Company for sale

Reference Number: HFL327

Location: South East England

Turnover: £1.2m

Status: SOLD

  • Opportunity to acquire a long-established IT Support and Hosted services company with a desirable client base.
  • The company is well located to service both London and Southern England, and its national network of engineers serve the rest of the country - particularly the Midlands, the North and Scotland.
  • Founded in 1990, the company has built strong partnerships with the world’s key IT vendors and suppliers.
  • It has maintained long term client relationships - 61% of customers, many of which are Blue Chip, have been with the company for between 10 and 22 years.
  • The company has strong technical knowledge and industry experience of large complex networks and continually invests in training.
  • The service package is fully comprehensive, covering the spectrum of Hosted/Cloud-based business solutions and support for companies ranging from 5 to 500 users.
  • A large part of the current business is Microsoft-based networks, and the company was an early adopter of the ‘VMWare’ virtualization platform software.
  • In the financial year ending 31st December 2015, there were 56 individual customers.
  • There are currently 36 clients on 12 month contracts with between 4 and 150 users.
  • Following a thorough review of the business, the company has transitioned to managed or web-based services and established a strong ‘Helpdesk’ team.
  • Field Support Engineers have been reduced to remove costs and a greater emphasis has been put on remote management tools and helpdesk software.
  • They have taken on new products with monthly recurring revenue streams, such as Back-Up (‘DRaaS’) Disaster Recovery and web-managed WiFi solutions.
  • Their ideal clients are entrepreneurial SMEs and the main geographical areas of interest are those surrounding England’s major airports.
  • The acquisition offers an outstanding opportunity for another IT support, hosted services, technology or telecoms company looking for a strategic acquisition to add to their portfolio of clients and increase revenue and profit ‘overnight’.

Products and Services

  • IT Support Services
  • Hosted Services
  • Email Services
  • Security Services
  • Network Services
  • Consultancy Services
  • Procurement
  • Business Continuity
  • Virtualization Solutions


  • The four Directors/vendors plus six full-time staff members and a part-time accounts executive.


  • The business operates from high quality offices located within a listed building in the South East of England.
  • A 5-year lease expires in May 2017. The annual rent is £19,600 and the rates £8,591.

Reason for sale

  • Retirement though some of the directors are prepared to stay involved going forward.

Financial overview

Year ending 31st December (31/3)2011 2012 2013 2014  Draft 2015
Sales revenue £1,263,610 £1,095,644 £1,696,284 £1,476,905 £1,179,470
Gross profit £653,644 £560,415 £741,005 £627,047 £546,407
Percentage 52% 51% 44% 42% 46%
Adjusted EBITDA £117,315 £87,466 £304,390 £185,976 £122,881
Percentage 9% 8% 18% 13% 10%


Adjusted EBITDA is stated after normalising the directors’ takings.



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