‘Our 2025 goal is to be a £20m run rate business’ - Flotek CEO
The acquisitive Welsh MSP plans to do so largely through M&A. And with two already done, it’s nearly reached its target
Flotek is staring down the barrel of a £20m target for the end of 2025 armed with a strong M&A pipeline to help the MSP get there.
The Cardiff-HQ firm has made a whopping 13 acquisitions since its inception in 2022, three of which were made in 2024 alone.
The last time Flotek tapped its card on the M&A card reader was April when it added Simpology UK Limited to its roster, bringing in an extra £1m to take its total revenues to £17m, and growing its headcount to 120 people.
Loading these companies onto its deck has allowed the Welsh Flotek to expand from being a geographic location-based organisation to more of a nationwide service provider, leading to larger projects with bigger businesses to boot.
Regional expansion aside, the Microsoft, SonicWall, and N-able partner also added managed print to its skill set through its acquisition of OES in February last year.
Since buying the business Flotek has grown its market share and added 50 per cent just in recurring revenues.
Now turning its sights to 2025 after a stellar previous year, Flotek CEO Jay Ball states his target for the end of this year.
“Our 2025 goal is we want to be a £20m run rate business,” he tells CRN.
“To make that up we're looking to do £3m of acquisition revenue.”
The MSP is already 65 per cent of the way there after its double acquisition in April with Simpology and the rest of its OES investment.
“In regards to what else we want to achieve, we are now refinancing as a business and looking at funding objectives so we can continue the scale through M&A in the coming years,” Ball adds.
The MSP boss names “scale and growth” as its number one for an acquisition, as well as an alignment of values and culture.
“If those things do align, then it’s about have we got a similar product set? Have we got a similar market strategy?”
While M&A is “crucial” to Flotek’s growth strategy, Ball outlines the company’s plan for the organic side of the growth fence.
“We launched a new business sales team at the back end of last year. We've been really fortunate with our account management team, which is also our sales team. They've been very good at upselling, cross-selling, converting legacy bases, converging old IT products onto new,” he explains.
“With our first acquisition, Gower Business Systems, we nearly doubled that business in the last two years. So it goes to show what you can do by actually having a real focus and getting a good account manager.”
Ball states the new business team is where Flotek needs to “lead the charge”.
“We have a business development team that is outbound calling every day and having really good success in generating new business opportunities.
“Then we've got a unit of business development managers who are out there talking to these new potential clients.
“So in regards to growth plans, it’s continued M&A, new business sales team, and converting and upgrading our existing customers are the three key areas for us this year.”
While scaling is top of Flotek’s agenda, what’s high on Ball’s priority list is continuing to follow suit with the MSP’s definition of service as it continues to grow.
“It's really about scalability. How we make sure we're scaling the IT service team with the sales approach that we take from account management and new business and making sure that we are bringing on the right customers and that we're growing the right ones as well.
“From a service point of view, we've scaled our business with the launch of a customer experience team last year and that's been a big impact to us.
“It's all about trying to maintain 70 per cent of our tickets within a first line team, essentially. That's been a real success for us.”