Cyber security revenue surges by 97% in a year of strong performance.
Gateshead-based Aspire Technology Solutions has reported another year of significant growth and strategic expansion, marking a 23.6% increase in revenue, reaching almost £40 million for the year ended 29 February 2024. The business also saw a 5% increase in employee headcount, growing from 238 to 250. This growth was primarily driven by organic expansion, which accounted for 22.2% of the revenue increase, as the Aspire Group successfully onboarded new customers and delivered enhanced value to existing clients.
Aspire’s growth has been supported by a significant minority investment from leading private equity firm LDC in March 2022, which valued the business at £85 million. The investment has been pivotal in supporting the Group’s strategic initiatives, including the acquisition of Cloud Cover IT in December 2023, contributing to the Group’s revenue for the year, with expectations of a larger impact in the coming full year. This strategic move underscores Aspire’s commitment to expanding its presence in the Scottish market, with additional resources and support provided to accelerate growth in the region.
In FY24, Aspire continued its substantial investments in technology, committing £1.7m towards advancing its private cloud technology stack and expanding its connectivity network. The Group also significantly scaled its next generation SOC (Security Operations Centre), contributing to a 97% year-on-year increase in security-related revenues, building on the 98% growth already achieved in the previous year.
Adjusted EBITDA for FY24 reached £5.6m. This improvement was achieved through a strategic shift in product focus and the implementation of several system and automation projects. The Group’s adoption of a new PSA (Professional Services Automation) platform has also enhanced customer response quality, with numerous service and build activities now automated.
Chris Fraser, CEO of Aspire Technology Solutions, commented: “We are proud of our robust performance in FY24, which reflects our continued focus on innovation, customer-centricity, and strategic growth. Our acquisition of Cloud Cover IT represents a significant milestone as we expand our service offerings in Scotland, and our ongoing investments in technology and cyber security ensure we are well-positioned to meet the evolving needs of our customers. As of February, at the close of FY24, our headcount was 250, and just a few months later, it has now surpassed 280, further enhancing our ability to deliver exceptional value and support to our customers.”
The Group’s customer base expanded from 1,700 to 1,900 clients, with continued representation across a diverse range of sectors. Recurring revenue growth remained strong at 24.5%, with recurring revenues now constituting 85.6% of total revenues.
Aspire’s NPS (Net Promoter Score) for FY24 stood at 81, well above the 70 threshold that indicates a ‘world-class’ level of customer satisfaction. Gross profit margins were reported at 29.6%, a slight decrease from 30.1% in the previous year, attributed to the Group’s ongoing investments in enhancing its business operations.
Fraser added: “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.”