Absoft makes significant turnover and profit leap
Leading independent SAP consultancy Absoft has boosted profits by more than 168% as it pushes a major growth strategy, on the back of a turnover uplift of more than a third in the last financial year.
The Aberdeen-headquartered business software specialist recorded turnover of £8.35million in the year-ended May 2012, up 36% on the £6.1million it secured in 2010-11.
Pre-tax profit jumped 168% to £738,177 from £275,000 as Absoft won new work across its key business areas – the energy, higher education and public sectors, with deals including contracts with oil and gas operators, major universities and local authorities.
Activity and turnover in oil and gas rose by 48.9% as Absoft, which supplies SAP software, consultancy and support services, expanded its client base in Norway and other global markets, while its work in other sectors grew 12% in 2011-12.
Absoft is now ramping up its growth plans, with 10 new graduate trainees expected to join the business in the current year, ahead of an overall 80% increase in staff planned over the next three years to support delivery of services to the company’s increasing customer base.
Absoft completed its first acquisition, of Warrington-based Hexarus Consulting, in March this year in a move to meet growing customer demand for organisational reporting and business planning and forecasting capabilities.
Ian Mechie, managing director, says: "A year on from our 20th anniversary results, we have made a very significant leap forward in terms of exceeding what were very ambitious growth targets.
"Securing a profit rise of 168% has proved that our strategy is working and with that in mind, we will continue to pursue further growth, particularly across the oil and gas, higher education and public sector arenas where we have such a strong standing.
"Last year, we had an aim to break the £5million barrier in our oil and gas team, so it has been gratifying to see them eclipse that target by pushing from £4.25million to £6.33million for the year, with targeted successes in Norway in particular.
"Outwith oil and gas, turnover increased from £1.8million to £2.02million and performance continues to be strong. Growth is already expected for the next financial year, with our teams having already reached 50% of their targets before the half-year point."
Absoft's investment in people over the next three years will see its nationwide team rise to more than 175 – it currently has 110 specialists including the employee base of Hexarus Consulting.
"Our people are absolutely crucial and it is through their capability to deliver and exceed clients' expectations that we have seen such robust performance over the last three years, in spite of very challenging market conditions," adds Mechie.
"We will continue to look to recruit the best in terms of both graduate trainees, who are the future of the industry, and established professionals who have the knowledge to drive our teams on to further success."