Vodafone Platinum partner Evolve Telecom is predicting turnover to grow by 25% this financial year to £20m, powered by an aggressive buy and build strategy and a continued drive into unified comms services.
The company has expanded rapidly in the past three years from when it posted £9.5m turnover in 2011, after embarking on an acquisition spree that has seen it buy six companies. These include MPC Romford, fellow platinum partner The Word and the base of JL Communications.
Its acquisition earlier this year of Quore and Fenchurch saw connections boosted by 15,000 to 80,000.
Since 2011, customer numbers have more than doubled from 1,800 in 2011 to 4,000. Staff numbers have also grown from 44 staff in 2010 to 115 to date, with 45 staff trained as dedicated product specialists for non-mobile services.
Managing director Mark Gordon said the company is currently focused on growing the business organically as it continues to consolidate its newly acquired business and expand into the unified comms sector.
Its 4,000 customers range from SMEs to FTSE 100 companies. Gordon said Evolve tends to focus on its medium and large enterprises within its customer base, which range from NHS Trusts and local authorities to medium to large private sector companies. He said: ‘We have the scale we want and we are at a size we are comfortable with and we are now focusing on growing our revenue streams and diversifying and developing other product lines in the business.’
However, he said the business’s strategy did not exclude further acquisitions. ‘Absolutely not. Although we are not desperate to make further acquisitions, we are in the position where if we have the right opportunity which can add value, with the right profile and customer base then yes, we would consider buying. We have the scale of size needed to push forward and will continue that growth organically and acquire where appropriate.’
He added: ‘Our focus is as a very dynamic, entrepreneurially led business and we want to continue to grow it.’
Gordon said he expected Vodafone’s shift to revenue payments would bring more acquisition opportunities to the market. He said: ‘There are big changes coming in the next few months in the way Vodafone pays the indirect channel and that could make people want to sell.’
Gordon said the company was keen to continue to build its portfolio of unified comms and cloud based services. These include One Net, fixed-line, broadband, phone systems, hosted telephony and cloud solutions. Gordon said Evolve tends to focus on its medium and large enterprises within its customer base, which include NHS Trusts and local authorities as well as medium to large private sector companies.
‘We are still a big mobile player and a dominant player in that business, but we see more opportunities for growth selling (unified comms) product lines,’ Gordon said. ‘Currently around 25% of our customers take a form of unified comms solution. That growth has come over the past three years. Over the next two to three years I think our non-mobile revenue stream will grow by several hundred percent as that is where the opportunities lie - it is still an untapped market. And we will also see customer numbers grow via these new products and services.’
Author: Carol Millett