IT Support Services Business in NW England

Reference Number: HDH279

Location:

Turnover: £173k

Status: SOLD

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Business overview

–      Outstanding opportunity to acquire a highly profitable IT support services business, based in the north west of England.

–      In the 12 months to 31st December 2013, the business has achieved 27% net profit on a total revenue of £173k.

–      The business has a strong client base which is geographically spread across the north west of England.

–      The business has annual contracts with 34 clients for IT Support services.  These clients account for over 95% of the total income. These client contracts are for 12 months and are renewed on an annual basis.

–      The business has a further 22 annual contracts for managed services including email protection, web-hosting, data back-up and ADSL services, which account for approximately 4.6% of  income at c. £8.1k per annum. These clients are all on monthly rolling contracts with 30 day notice periods.

–      The total recurring revenue to the business from both IT support and managed services is £84k per annum (48%) with the remaining £81k (47.4%) accounted for by consultancy projects and hardware and software sales.

–      Having been acquired out of administration by the current owner, the business has delivered steady growth over the past 18 months.

–      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 employs two technical staff to run the day to day support activities; all support calls are routed through a central telephone number and the call is sent out to the team to action.  Both team members work from home.

–      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.

–      Significant synergy savings are possible for buyers who already have a base in the North West through economies of scale in service delivery.

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 small systems integration projects.
  • Hardware and software sales

Employees:

–        1 technical manager + 1 systems engineer.

Premises:

–        Both employees work from home and have company provided transport.

Reason for sale:

–        The business is owned by a large hosted and cloud services company. The vendors no longer see a strategic fit for the division and wish to sell it by means of the sale of the Customer Contracts, Staff Contracts and the Debtor Book.

Financial overview

YE: 31st December 2013

12 months to 31st December 2013

Sales revenue

£173,096

Net Profit

£46,124

Percentage

26.6%

SOLD

 

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