IT Support and Telecommunications Company

Reference Number: HCM289


Turnover: £1.1m

Status: SOLD

Business overview

–      Outstanding opportunity to acquire a highly successful IT support and telecommunications provider, based in London.

–      The business has delivered aggressive growth in the last 3 years with YOY growth of 64% to July 2012. Projected turnover for the year to July 2013 is £1.1m.

–      The business has a strong proposition as a one touch IT support and Telecommunications provider including Broadband.

–      A gross Profit margin of 42% was delivered in the year to July 2012 and the business is projecting an increase in gross margin to 47% in the year to July 2013 largely due to contractual gains in IT support and the increasing retention of larger customers.

–      The business achieved a 16% net profit in the year to July 2012 and is projecting an increase in net profit to £191k (17%) to July 2013.

–      Established in 2008, the business has developed an extremely loyal client base of over 120 clients with no one client representing more than 38% of total revenue.

–      The client base is well spread and includes global financial organisations and consultancy firms, serviced office providers, drug development companies, national retailers and hospitals.

–      Approximately 30% of current revenue (Average c.£27,000 per month) is generated from 49 clients who have IT support contracts and make monthly payments (15% on quarterly). Support contracts are annual rolling contracts.

–      Telecoms are an increasingly important part of the sales mix and the company has positioned telephony services as a core part of its proposition rather than a bolt on. Key to this positioning is the fact that the company sells call traffic/minutes as well as just hardware. The average call minutes through the company are currently 138,000

–      Revenues from telecoms subscriptions, hardware and call traffic will account for 14%  of company revenue in the year to July 2013 (c.£158,000). The medium term projections for this aspect of the business are for significant growth and that the high margin call traffic will become a substantial part of the companies recurring revenues.

–      The business has a well defined brand and highly regarded service offering. It is one of very few medium sized business IT support companies in London to offer the range of provision and support services for both telecommunications and IT.

–      The business has a highly regarded website and is getting an increasing number of new business enquiries through the website.

–      The business would be of particular interest to other IT support companies that are looking for a strategic acquisition to add to their portfolio or to telecoms companies looking to develop into IT support. Significant synergy savings could be possible for such buyers who already have a base in London.

Reason for sale:

-        The vendors believe the business is in an excellent position to be taken to the next level and would like to work within a larger group or with people with experience of managing larger businesses to help realise this.

Products and Services

–      The business offers IT support and Telecommunications services on a business to business basis including:

  • Support/maintenance contracts
  • Consultancy/Network re-engineering projects
  • Business Telephone systems
  • Managed services (including email hosting and back-up systems)
  • Hardware and software sales
  • Large business copier/printers
  • Mid-High end Business Internet         


-        3 directors (vendors) + 8 staff which include 2 Senior IT services engineers, 4 IT services engineers, 1 field service engineer and 1 sales and finance manager


-        The business operates from a serviced office in London with room for expansion.

Financial overview

YE: 31st July



2013 (for)


2014 (for)

Sales revenue





Gross Profit











Net Profit













Request further information on this business