DATA management firm Aegis IT has taken over a small rival as it pursues an expansion plan it hopes will quadruple its revenues within three years.
The Newcastle company has built a £2.5m annual turnover business, managing and maintaining computer networks for North East clients, including Tyneside-based software giant Sage, Newcastle College, Procter & Gamble and G4S’ meter-reading operation on the Cobalt Business Park in North Tyneside.
But the six-year-old firm is now looking to step up its expansion by winning customers across the UK and serving them from a new headquarters on Newcastle Quayside, three times the size of its current base in Charlotte Square. It has bought Washington-based Comprehensive IT to boost its expertise with the firm’s three staff and has just opened an office in Edinburgh to drive an attempt to win Scottish contracts following the successful launch of an office in Leeds two years ago.
“We are looking to grow profit and revenues out of this office, recruiting staff in the North East to service the contracts wherever we win them,” said Aegis founder and technical director David McPherson.
“We have grown largely on the basis of contracts in the North East so far but we work mainly with very large companies and there is limited potential in the North East and a huge untapped market in Scotland.
“We work a lot in the financial markets and there are a lot of companies in Edinburgh and the central belt which could become customers.
“The market up there is three or fourfold the size of that here.”
He believes the business can double its revenues each year at least for the next two years, taking its turnover to £10m by 2013.
But he stresses that despite the company’s outward-looking expansion he will maintain a “North East stronghold” and aims to double his 18-strong workforce in this region over the next couple of years. Around five staff will be taken on this year.
He is also hoping to raise up to £200,000 in investment to turn its new Tyneside base into a “centre of excellence” which he says will contain the best demonstration and training facilities in its field between Leeds and Edinburgh.
“We will also be looking to see whether there is further potential to grow the business with an office further south. But our expansion plans are steady and controlled and my biggest hopes at the moment are for the Scottish market,” added Mr McPherson.
He said: “Despite generally tough trading conditions in 2009 and the early part of 2010, we have seen demand for our services increase and expand. Our consultancy lead approach to customer requirements allows us to change people’s perception of technology from a cost burden to a real and significant business benefit.”