Growing tech firm Aspire Technology Solutions has posted a 6% lift in turnover during a year of uncertainty and restrictions imposed by Covid-19.
The Gateshead firm – a former North East Company of the Year – last week officially opened its new offices at Pipewell Quay development, based on the site of the former Baja Beach Club.
The move topped a year in which it announced ambitious growth plans, including the creation of more than 150 jobs across two sites – the Gateshead head office and a new base at Fusion Hive, a business and innovation centre based on Stockton’s Northshore.
Now the 14-year-old business, communications and cloud services provider has published accounts for the year ended February 28, showing a 6.3% rise in turnover to £24.7m, driven by contracted recurring revenue.
The firm, whose customer base extends across the UK and covers a range of sectors including the public sector, transportation, retail and professional services, also saw operating profit increase 15% from £4.3m to £4.95m.
Its gross profit remained flat at £8.9m with gross margin at 35.8%, down 2.5% on last year in part due to the reduction in transactional sales and in part due to investment in staff with headcount growing by 11.1% to 167.
Finance director Stuart Hall director, said: “Despite a challenging 12 months due to the uncertainty and restrictions imposed due to the Covid-19 outbreak, we report an increase in turnover of £1.5m (6.3%).
“This increase was founded in contracted recurring revenue which grew by 13.1% and which represented 88.6% of the total revenue in the year. In contrast, our more transactional one-off revenue fell by 26.8% due to a reduction in demand and inability to carry out site installations due to office closures and social distancing rules.
“We have continued investing in ultrafast dedicated connectivity (UDC) adding £435,000 and have strengthened our cloud and hosting infrastructure with over £1m of investment split across our growing network of datacentres.
“We emerge from the year of uncertainty created by Covid-19 and Brexit in a strong position having invested heavily in technology and people. We forecast a steady return in one off revenue to levels seen in FY1819 and FY1920. We expect continued demand for our communications offering and an increasing demand for our suite of cloud services that can harness the benefit of those connections.
“Our focus remains on customer empowerment and we will continue to engage as long term IT partners. We will continue to innovate in how we deliver to ensure that we offer our customers the best solutions whilst remaining competitive on price.”
Managing director Chris Fraser added: “Aspire has gone from strength to strength in 2021. We’ve continued to grow – adding over 70 new colleagues this year alone.
“In addition to investment in headcount; we’ve also invested heavily in products and infrastructure. We continue to grow our Ultrafast Dedicated Connectivity (UDC) full fibre network, ensuring North East businesses can benefit from the fastest connectivity in the country. And, we’re also set to launch our exciting new private cloud solution very soon. This will ensure customers benefit from all the efficiencies and advantages that transition to the cloud can provide, whilst keeping them at the cutting edge of innovation.
“Our new HQ on the banks of the Tyne provides a fantastic place to work, and we’re looking forward to many pizza parties on the roof terrace when the weather is warmer.
“All in all it’s been another very busy year. I’d like to thank the team for their incredible work. I’m really excited about the next 12 months as we continue to deliver our ambitions plans”.
