Technology experts ITPS have seen turnover jump from £11m to £21m in the last 18 months after securing a series of multi-million pound contracts to underpin the firm’s ambitious growth plans.
The Gateshead-based data centre business, which specialises in IT consultancy, implementation and support, has secured a range of deals with organisations including one of the UK’s largest housing providers and a household name in the financial services industry.
The wins add to ITPS’s client base, which in the North East includes Greggs, Sembcorp, Northumbrian Water, Narec and several of the region’s biggest law firms.
The turnover announcement follows the company’s recent signing of a £2m deal to create a 33,000sqft data centre, which will become the largest North East facility of its kind.
IPTS currently employs 108 staff but managing director Garry Sheriff will appoint 25 new employees through the creation of the data centre Chester-le-Street, in a former IBM unit measuring 33,000sq ft.
The IT company’s expansion in the region is being supported by a £242,000 grant from the Let’s Grow fund - part of the Government’s Regional Growth Fund, which is operated by BE Group in partnership with The Journal, sister paper The Gazette and UNW LLP.
Managing director Garry Sheriff said: “We are now in our 14th year of consecutive growth, thanks in part to a huge boost in demand for our expertise in the data centre and cloud services market.
“Year on year we have seen turnover and profits rise thanks to an equal focus on winning new business and building on existing client relationships, which is where our stream of referrals is generated, and our reputation for delivering large, complex IT solutions was built.
“A lot of our recent wins have come from clients outside the North East, which was partly behind our strategic decision to acquire a fourth data centre. Together with some potential acquisitions, this move will support our plans to further grow our national client base.
“We are delighted that as we go into our next financial year with a solid set of results behind us, we also have £9m of business already secured under three and five-year contracts.
“This gives us a level of business confidence that will underpin further expansion and job creation.
“Ours is a highly competitive industry with a lot of players talking themselves up in terms of expertise and deal wins, but we prefer to play with a straight bat, setting realistic targets and then achieving them.
“We set ourselves a target of £20m and we have exceeded it by a credible margin. Annualised turnover is just under £15m and all the signs are that next year will be even better.”
The technology solutions company recently announced the appointment of Paul Varley as a non-executive director.
Mr Varley was head of energy firm Eaga plc, steering the £850m turnover business following its sale to Carillion Energy Services in 2011.
He subsequently spent 18 months as chief executive of Newcastle Falcons Rugby Club, and since its inception in 2011, has been a board member of the North East Local Enterprise Partnership and, since 2012, a non-exec director at energy efficiency company KNW.
He added: “I am delighted to be working alongside ITPS at this pivotal point in its growth.”