IT Support and Hosted Services Company for sale

Reference Number: HFL327

Location: South East England

Turnover: £1.2m

Status: SOLD

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Click to download Non Disclosure Agreement

Business Summary

  • 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

Employees

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

Premises

  • 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)2011201220132014 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
Percentage52%51%44%42%46%
Adjusted EBITDA£117,315£87,466£304,390£185,976£122,881
Percentage9%8%18%13%10%

 

Adjusted EBITDA is stated after normalising the directors’ takings.

UNDER OFFER

 

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