Reference Number: HGS025
Location: UK Wide
- Highly successful provider of IT Support and Services company for IBM technologies.
- Based across the UK with its largest clients located in London, Birmingham and Glasgow.
- Turnover for the year to December 2016 was over £1.16m with a gross profit of 35%.
- The forecast for 2017 is for a turnover of £943k with gross profit of £504k or 54%.
- Out of a revenue of £1.16m in 2016, £372k (32%) is for IT support services.
- Out of a forecast turnover of £943k in 2017, £403k (43%) is expected to for IT support services.
- The company is quickly approaching the point where approximately 50% of its turnover will be from high margin IT support services.
- Two clients have multi-year year support contracts that together are worth £168k or more than 40% of IT support revenue.
- All clients buy blocks of days for IT support services as required on a project basis.
- The business has a desirable client base of blue-chip companies and high client retention rates.
- The client base is mainly made up of businesses in the retail, business services and transport sectors.
- The business would be of particular interest to other IT support, cloud services and/or telecoms companies that are looking for a strategic acquisition to add to their portfolio and could make significant synergy savings.
- Being an IBM Premier Business Partner in the social space; the acquisition of the company is likely to be of particular interest to other IBM partners globally or a Microsoft partner looking to diversify.
- There is a strong team of qualified technical staff in place.
- The company has excellent cloud based financial management systems in place.
Products and Services
IT Support Services:
- 24/7 Support and Systems Management
- Desk side or on-site support
- IT co-sourcing and outsourcing
- Software procurement
- Hosted email
- Hosted virtual servers
- Managed data back-up
- Virtual Disaster Recovery
- Integration, development and support of IBM Collaboration solutions
- 2 Directors, with 3 full-time and 1 part-time members of technical staff.
- Rented office – lease on 1 months’ notice.
Reason for sale
- The vendors are pleased to have built the business to its current size and profitability. However, each Director also has 2 other business interests and have taken the decision to exit this business to focus on those other interests now this business has a very solid foundation and platform from which to grow.
|Year ending 31st Dec||2013||2014||2015||2016||2017|
|Further Adjusted EBITDA||£81,202||£142,222||£177,131||£183,410||£270,340|
- Adjusted EBITDA is stated after having accounted for the vendors’ replacement cost.