IDE Group now 'considering growth through acquisition' after sale of Connect business

MSP publishes delayed trading figures for 2021, which detail plans to grow through M&A and expanding into Europe

IDE Group is now considering hitting the M&A trail and expanding into Europe following the sale of its Connect business last year.

The MSP released its long delayed financial results for the year 2021 today. The firm was scheduled to release its 2021 results in June but has delayed publication three times this year citing staff absences due to Covid.

IDE's revenues increased by 25.4 per cent in calendar 2021 to £14.5m, while gross profit margins grew by 10 per cent. Adjusted EBITDA swelled to £3.1m - up from £1.4m in calendar 2020.

The firm added that it received £40,000 through the Covid Job Retention Scheme.

IDE put in place several cost-cutting measures in 2020, including redundancies in areas of the business which experienced a decline in demand due to the Covid pandemic.

It sold off its Connect business to CloudCoCo in October 2021 for £250,000, claiming that it did not have the resources to invest in the division. The Connect business had annual revenues of £13m and an adjusted EBITDA loss of £0.8m.

Its remaining Manage business has seen its headcount increase by 26 per cent during 2021. However, group headcount fell by 44 per cent as a result of restructuring and divesting the IDE Connect business.

But, after three years of restructuring, IDE said that it is now looking at hitting the M&A trail and expanding its business into Europe.

"The Group is now considering growth through acquisition and would consider synergistic targets that would expand and deepen our service offerings," the firm says in its financial results.

"Our plan is to continue with our organic initiatives that will continue to demonstrate positive growth. We intend to expand our partner network and are also looking to expansion into Europe."