UK technology sector remains healthy

Resellers still rank prominently among the fastest-growing technology companies in the UK, despite tight margins, mounting competition and pressure from vendors' direct-sales initiatives and internet sales.

Resellers still rank prominently among the fastest-growing technology companies in the UK, despite tight margins, mounting competition and pressure from vendors' direct-sales initiatives and internet sales.

Resellers Catalyst Solutions, Frontline, CADspace, Voyager Networks, Stratum Project Management and Software Warehouse (now Jungle.com) all recorded growth of more than 300 per cent last year to make it into Deloitte & Touche's National Fast 50, the list of the UK's fastest-growing technology companies.

Stratum (in 11th position with 1151 per cent growth) was the highest, followed by Frontline (18th with 796 per cent), CADspace (20th with 724 per cent), Voyager (34th with 440 per cent), Catalyst (44th with 354 per cent) and Software Warehouse (50th with 312 per cent).

The survey found that the UK technology industry is robust and that more than 75 per cent of companies are considering listing on the stock market despite the recent volatility of technology stocks.

The shortage of skilled workers and wage inflation are still major concerns, but staff retention is not a big problem. The survey showed that US and UK competitors, rather than European rivals, are seen as the biggest threat. Companies said they preferred to expand through organic growth, not mergers and acquisitions.

William Touche, Deloitte & Touche's telecoms, media and technology lead partner, said: "The survey suggests the environment for technology entrepreneurs is improving significantly. Although technology shares have slumped from their earlier year highs, the survey reveals a good level of business optimism and there are many good-quality companies considering listing."

First published in Computer Reseller News