IT Service and Support Company for Sale
Reference Number: HEH115
Location: Central London
Turnover: £2.0m
Status: SOLD
Click to download Business Summary PDF
Business Summary
- Successful provider of fully managed IT support, hosted/cloud services, business continuity and disaster recovery solutions.
- Based in central London with clients predominantly in London and South East.
- Strong contracted revenues accounting for c.60% of total turnover in the financial year to March 2015.
- High quality and loyal customer base, primarily from the private equity market.
- Majority of contracts are 12 month contracts with 3 month notice periods.
- PC users range between 2 to 350.
- An average of c.29% YOY growth in the last 2 financial years.
- Highly profitable with 22% EBITDA in financial year 2014/2015.
- Strong team of mostly long-serving, highly-skilled and experienced employees led by a solid second tier management team.
- Solid business infrastructure which would enable significant future growth.
- Long track record of successful support for medium sized and larger organisations.
- Strong opportunities to cross sell other products and services into existing client base.
- Excellent customer retention.
- Microsoft Small Business Specialist, Microsoft Silver Partner for Midmarket Solutions. Hosting Partner, Datacenter partner, Dell and HP registered partner, Accredited Adobe reseller and a Cryoserver Certified Partner.
- The business would be of particular interest to either a London-based trade buyer as a bolt-on, or as a strategic acquisition to a non-London based firm wanting a foothold within the M25.
Products and Services
- IT Support Services: on-site and remote
- Full range of cloud services including Office 365.
- Project Management
- Firewalls, network security and remote access.
- IT Security Solutions
- Hardware sales
- Comprehensive electronic record archiving
Employees
- Operations Director and Projects Director (vendors) and team of 11 staff including a Technical Services Manager, Service Desk Manager and 8 service desk engineers (including team leader).
Premises
- Fully serviced offices in central London with 11 desks and room for expansion.
- Lease has a potential break at the end of January 2016.
Reason for sale
- One of the Vendors, the Operations Director, wishes to retire. The other, the Projects Director, would provide a full handover of the business and may be susceptible to staying with the business in the long term if this was mutually desirable.
Financial overview
| Year ending 29th March | 2010-11 | 2011-12 | 2012-13 | 2013-14 | 2014-15 |
| Sales revenue | £1,166,381 | £1,017,535 | £1,230,791 | £1,505,625 | £2,052,830 |
| Net profit (before tax) | £184,445 | £134,801 | £207,490 | £295,751 | £386,172 |
| Percentage | 16% | 13% | 17% | 20% | 19% |
| Adjusted EBITDA | £230,932 | £171,351 | £277,941 | £384,674 | £458,930 |
| Percentage | 20% | 17% | 23% | 26% | 22% |
SOLD