IT Support & Telecoms Company For Sale

Reference Number: HDM331

Location: East Midlands UK

Turnover: £677K

Status: SOLD

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  • Outstanding opportunity to acquire an established, fully managed IT and Telecoms company, specialising in broadband and cloud services based in the East Midlands.
  • The range of services offered include Office 365 migrations, Hosted Telephony, Broadband and managed service wraps.
  • Customers are predominantly based within the professional services sectors, including solicitors, estate agents, accountants and insurance companies.
  • The business has grown to over 90 clients with turnover to July 2014 of £705K and an adjusted EBITDA of £80K. Projected revenue to July 2015 is £677k with projected EBITDA of £115k.
  • IT related recurring revenues are c.£10k per month and Telecoms recurring revenues are c.£25k a month, which gives rise to a combined annual recurring revenue of c.60% of the annual total.
  • The business has a healthy sales pipeline including some larger scale prospects.
  • All customers are signed to robust contracts of between one and three years with automatic rollover of contracts for clients of 10 users and above.
  • IT support is provided on primarily fixed price per user contracts.
  • Customers range from small (1-5) to 130 users, averaging 20.
  • Customers are mainly based in the East Midlands, with other telephony-only clients nationwide.
  • Most customers are on Office 365 with servers being migrated to VMware/Office 2012 environments.
  • The business has innovative branding including an outstanding website, and the directors have focused on continual improvements to processes and policies.
  • The acquisition of the company would likely appeal to businesses wanting to make a strategic bolt-on to an existing IT/telecoms company infrastructure to grow their portfolio of clients.
  • The two vendors are willing to work with the new owners to support a short-term handover for an agreed term.

Reason for sale

  • The two directors are seeking to radically change direction and want to sell the business in order to fund voluntary work, other non-competing business interests, and to travel.

Products and Services

  • IT Support
  • Business Broadband
  • Telecoms Services
  • Broadband Services

 Employees

  • Two full-time Directors (the vendors), two part-time employees (a marketing assistant and internal sales assistant), and two technicians.

Premises

  • Fully serviced rented offices on a 6 year term (since January 2012). There is no formal lease agreement and therefore notice can be served at any time.
  • Rent £1000 a month.

Financial overview

YE 31st July 2011/2012 2012/2013 2013/2014 2014/2015(Projected)  
Sales revenue £315,295 £459,135 £705,423 £677,141  
Gross Profit £73,744 £134,227 £238,104 £270,782
Percentage 23% 29.2% 33.8% 40.0%  
EBITDA (adjusted) £8,988 £12,129 £80,749 £115,346  
Percentage 3% 3% 11% 17%  

 

SOLD

 

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