IT Support Services Business for Sale – Bolt-on Opportunity

Reference Number: HGS014

Location: North West England

Turnover: £130k

Status: SOLD

Business overview

  • Opportunity to acquire an IT support business, based in the north west of England.
  • In the 12 months to 31st October 2015, the business achieved 25% adjusted EBITDA on a total revenue of £113k.
  • The business has a strong client base which is geographically spread across Manchester and the north west of England.
  • The business has annual contracts with 52 clients for IT Support services. These client contracts are for a minimum of 12 months and are on a rolling basis thereafter with 90 days’ notice required – many have been with the organisation for 3–5 years.
  • The total recurring revenue to the business from both IT support and managed services is £50k per annum (44%) with the remaining £63k (56%) accounted for hardware and software sales and ad hoc projects.
  • The contracted clients account for over 93% of the total income from additional hardware, software and ad hoc project sales above their service contracts.
  • The business was set up in 2010 and has traded well for the last 5 years.
  • The business primarily services small businesses in the North West with between 5 and 50 users. Most of the work is completed remotely but occasionally client-site visits are required.
  • The business currently employs one member of technical staff to run the day to day support activities plus the vendor/director. The vendor works part-time due to other commitments.
  • This business would be of particular interest to other IT support companies that are looking for a ‘bolt-on’ business that brings a substantial number of additional contracts to their books, or a telecoms company looking to move into IT support.

Products and Services

The business offers traditional IT support services including:

  • IT Support/maintenance contracts.
  • Managed services (including email and web hosting and back-up systems).
  • Consultancy and hardware and software sales.

Employees

  • One full-time technical engineer, in addition to the vendor who works part-time.

Premises

The offices are leasehold.

  • Size: 18.92 sq. m., plus an allocated car park space.
  • Rent: £400 per month.
  • Rates: £116 per annum .

Reason for sale

  • The owner is retraining to be a mental health professional and to make some other lifestyle changes.

Financial overview

Forecast
Year ending 31st Oct 2013 2014 2015 2016
Sales revenue £46,991 £77,472 £112,804 £130,000
Gross profit £29,371 £40,768 £60,972 £70,200
Percentage 63% 53% 54% 54%
Adjusted EBITDA £19,411 £15,636 £28,630 £35,782
Percentage 41% 20% 25% 28%
SOLD

Request further information on this business








    Hornblower Business - Business Brokers UK
    Privacy Overview

    This site uses cookies – small text files that are placed on your machine to help the site provide a better user experience. In general, cookies are used to retain user preferences, store information for things like shopping carts, and provide anonymised tracking data to third party applications like Google Analytics. As a rule, cookies will make your browsing experience better. However, you may prefer to disable cookies on this site and on others. The most effective way to do this is to disable cookies in your browser. We suggest consulting the Help section of your browser or taking a look at the About Cookes website which offers guidance for all modern browsers.