Aspire Technology sees 23.6% revenue boost, nears GBP £40 million

Aspire Technology Solutions has reported another year of significant growth for the financial year ending 29 February 2024, with revenue increasing by 23.6% to nearly GBP £40 million. The Gateshead-based company also saw a notable surge in its cyber security revenue, which jumped by 97% year-on-year.

This growth in revenue has been paired with a 5% increase in employee headcount, rising from 238 to 250 staff members. The growth is attributed primarily to organic expansion, accounting for 22.2% of the revenue increase, as the company successfully onboarded new customers while delivering enhanced value to existing clients.

A significant minority investment from the private equity firm LDC in March 2022, which valued Aspire Technology Solutions at GBP £85 million, has bolstered the company's growth. This investment has facilitated several strategic initiatives, including the acquisition of Cloud Cover IT in December 2023.

According to the company, this acquisition is expected to have an even larger impact on their financial results in the upcoming fiscal year. Aspire aims to expand its presence in the Scottish market through this acquisition.

In the financial year 2024, Aspire continued substantial investments in technology, committing GBP £1.7 million towards advancing its private cloud technology stack and expanding its connectivity network. The company also significantly scaled its next-generation Security Operations Centre (SOC), which contributed to the impressive increase in security-related revenues.

The company's adjusted EBITDA for the fiscal year reached GBP £5.6 million, thanks to a strategic shift in product focus and the implementation of various system and automation projects. The adoption of a new Professional Services Automation (PSA) platform has improved customer response quality, with numerous service and build activities now automated.

Chris Fraser, CEO of Aspire Technology Solutions, expressed his satisfaction with the company's performance. "We are proud of our robust performance in FY24, which reflects our continued focus on innovation, customer-centricity, and strategic growth," he said. "Our acquisition of Cloud Cover IT represents a significant milestone as we expand our service offerings in Scotland. Our ongoing investments in technology and cyber security ensure we are well-positioned to meet the evolving needs of our customers."

As of the end of February 2024, Aspire's headcount was 250, but it has since risen to over 280. This increase is seen as enhancing the company's ability to deliver value and support to its growing customer base. The number of clients expanded from 1,700 to 1,900, with recurring revenue growth strong at 24.5%. Recurring revenues now account for 85.6% of total revenues.

Aspire's Net Promoter Score (NPS) for FY24 stood at 81, significantly above the 70 threshold indicating 'world-class' customer satisfaction. Gross profit margins were reported at 29.6%, a slight decrease from the previous year's 30.1%, attributed to ongoing investments aimed at enhancing business operations.

Looking ahead, Fraser is optimistic about the future. "As we look ahead to FY25, we are confident that our strategic initiatives, coupled with our relentless commitment to delivering exceptional value to our customers, will drive further growth and success. Our focus on cyber security and modern workplace solutions remains a top priority, as businesses increasingly rely on secure and accessible data in an ever-evolving threat landscape," he stated.