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One of the pioneers of the managed services model has revealed the rewards that come from focusing on specific verticals and a local geography.
Cardiff-based Circle IT has hit the £15m turnover barrier, close to a 40% increase year-on-year, with recurring revenue accounting for £3.2m for its fiscal 2018, the 12 months ended 30 November .Content Continues Below
More than half of its managed services business comes from the Welsh market and 35% of the firm's project work. Some of the local education contracts like the University of South Wales and Cardiff & Vale College have acted as a springboard to gain more business in that area across the country, including clients like St. Andrews University and the University of Dundee.
The firm has also been able to secure other customer references in the public sector, including Newcastle City Council, as well as a host of private firms.
“We’re pleased to report such a strong performance during 2017/18. This year has seen us work with an increasing focus on education and we have performed well in meeting our strategic goals to solidify our efforts in this market," said Circle IT CEO, Roger Harry.
The firm has also seen its geographical reach expand over the last fiscal year and Harry hinted that it had more plans on that front in its next fiscal year.
“With significant client wins we have also expanded our support services to Europe, where we now have satellite offices on the continent which are opening up further avenues of growth," he said.
With Brexit looming and plenty of uncertianty about what that could mean for the economy making predictions about the year ahead is difficult but Harry said that it was determined to keep the momentum going.
“Next year presents a lot of uncertainly for businesses UK-wide but we’re committed to drive our growth plans and look forward to a challenging, yet achievable 2019," he added.