Onyx gears up for growth spurt

Neil Stephenson: We have an opportunity to upscale the business.

Ambitious Middlesbrough-based reseller Onyx is aiming to double revenue this year and build its national reputation.

Onyx started life as an ISP 13 years ago and has grown revenue to about £12m, largely through acquisition. With 89 UK staff, the firm’s business is now evenly split between internet services, data hosting, security and managed services.

Chief executive Neil Stephenson said: “Instead of growing tall and narrow, we broadened the proposition. We bought a datacentre and a security company, which were complementary and gave us customers in defence and financial services.”

Onyx acquired Edinburgh-based Dundas IT and Glaswegian VAR Campbell Lee last year and half the firm’s business is now conducted in Scotland. Stephenson said he was looking for a minimum of £20m turnover this year and that strengthening the Onyx brand nationally was an important goal.

“In the past we have played on that local angle but we need to raise our profile,” he added.

Onyx sells directly and through the channel and Stephenson claimed upwards of 80 per cent of business came through recurring revenue streams. He added that the ongoing recession offered a chance to consolidate the market.

“We have an opportunity to upscale the business and there is tremendous value to be had,” he said. “We are getting to the point where one big acquisition is interesting. But organic growth is very important and we have to win new business.”

Dave Millett, director of Equinox Business Consulting, claimed building a national company was partly about perception. “Presence can be where you physically have people or where it is perceived you are located,” he said. “There are more companies in the south-east so businesses there have more to feed off.”