Tyneside tech firm Aspire Technology Solutions says it has plans for further growth after a year of investments in staff, systems and a new Quayside office led to falling profits.
The former North East Company of the Year, which was established 15 years ago by Chris Fraser and Nigel Begg, is one of the UK’s leading UK IT-managed service and cybersecurity providers, with a growing workforce in Gateshead, Stockton and London.
The business, which has clients across the UK in a number of sectors, last year moved into its new head office at Pipewell Studios, the transformed former Baja Beach Club nightclub.
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Aspire Technology Solutions Ltd has now published accounts for the year ended February 2022, showing how it posted another year of growth with turnover rising 12% to £27.6m on the back of increasing recurring revenues. Operating profit dropped 21%, from £4.95m to £3.9m, on the back of making significant investments in staff, the new Gateshead office, and its products.
During the year the firm employed an average of 192 people, and it is also delivering plans to create more than 150 jobs across its recently opened head office and a new base at Fusion Hive, a business and innovation centre based on Stockton’s Northshore.
Those plans are being aided by investment it secured a month after the financial year end - a deal which valued the business at £85m.
The company’s Aspire Solutions Holdings Limited secured significant minority investment from LDC, the UK’s leading mid-market private equity firm and part of Lloyds Banking Group, to support the management team’s moves to pursue organic growth and acquisition opportunities.
Stuart Hall, the firm’s finance director, said in the accounts: “The company has recorded another strong year of growth with revenue at £27.6m, a 12% increase. Whilst the company has grown its sustainable recurring revenue by 7%, transactional one-off revenues have returned to pre-pandemic levels with 49% growth.
“The company is committed to delivering high levels of customer service and so has invested heavily in its people resource and in technology with a 22% increase in headcount (FT) and asset spend of £1.6m. The company has also completed a move to its newly developed headquarters on Gateshead Quayside which will provide a base for its projected growth.
“These investments will provide a solid foundation for future growth but in the short term have put pressure on margins. Gross profit closed on £8.8m at 32% of revenue.
“The company forecasts double digit revenue growth in 2023 and has ambitious plans beyond. Having secured a minority investment from LDC, the company enters 2023 with a strong pool of resource to facilitate business growth.
“The company remains committed to its roots in the North East and will continue to advocate investment in the region through expansion of ultrafast dedicated connectivity and deployment of cloud environments. The company has recognised the ever-growing importance of cyber security and continues to significantly invest in maturing its products to cement its position as the managed service partner of choice. The company remains committed to enabling its customers to grow more quickly through use of technology and to support that technology with a world class service offering.”
Following publication of the accounts, the company said an announcement on plans for former office Heworth Hall will be made in due course.
