‘We work with firms that take security seriously’: Logiq execs on evolving offering

James Walker and Andy Gilbert sit down with CRN to discuss expanding outside the UK, their £8m managed services revenue target, and actively looking for buyout opportunities

From consultancy to MSP, there is often only a fine line, one that Logiq has long crossed.

Founded in 2018 as a cybersecurity consultancy, the company has progressively built its managed services offering over the years, James Walker, CTO of Logiq, and Andy Gilbert, managed services director, tell CRN.

This evolution was driven by a clear gap the organisation identified in the defence and critical national infrastructure (CNI) sectors.

The Bristol-based provider currently works with firms across the UK defence supply chain, whether they are direct Ministry of Defence (MOD) suppliers or tier-four subcontractors on larger programmes.

“Another key vertical is civil nuclear, and overall we group our focus under CNIs,” Walker says.

“We’re open to adjacent verticals, but our priority is always businesses that take security seriously.”

UK customers and international expansion

As of today, the MSP serves around 200 customers, mostly UK-based.

A number of its clients are also multinational organisations that use Logiq’s managed services to operate in the country.

Although the business is focused on the UK, the CTO says he is open to expand, especially through some large clients that need support on international defence or security programmes.

“For instance, they might ask if we can deliver the same service for a foreign defence contract or a NATO programme, and we’ll explore that together,” explains Walker.

Balanced revenue and cautious openness

Logiq’s revenue is split between 20 per cent managed services and 80 per cent consultancy.

“Balance is good,” Walker tells CRN.

“It’s really good to have diversification as part of a business model.

“I wouldn’t want managed services to drop below 20 per cent, but if it could rise to 40 per cent or 60 per cent, and that’d be fine too.”

Last year, managed services brought in £6m revenue, with a target of £8m for this year.

Consultancy generated £24m to £25m.

While Logiq has not been acquisitive in the past, it is now actively looking for buyout opportunities, either to grow geographically or to strengthen its customer base and capabilities.

“We’re open, but cautious; we don’t want to dilute our focus. We prefer targeted, strategic acquisitions that reinforce our niche.”

Vendors and single-distie system

Gilbert identifies Microsoft as the firm’s main partnering vendor.

It also works with Acronis for backup, LastPass for password management, iboss as an internet gateway, and Patch My PC for application patching and maintenance.

He adds that Logiq operates as a single-distributor organisation, as it only deals with cloud commerce marketplace Pax8.

“The relationship has been key to our success over the last year, and we’re very comfortable with it,” highlights the managed services director.

Cybersecurity, AI, and government challenges

Looking ahead, Gilbert sees AI and cybersecurity as central to the company’s strategy, especially with the MIP model coming into play.

“For us, being cybersecurity focused remains the biggest driver.

“Every organisation needs stronger defences to reduce reputational risk from breaches, which are becoming more frequent and visible.”

According to Walker, Logiq intends to expand its offering to meet evolving customer needs.

The company has also been focusing on internal technology around automation to increase efficiency.

“My objective is to drive our growth margin, and we’ve been very successful in doing that in the past year, in terms of bringing in technology such as PSA tools and Azure AI Foundry.

“We have a target to scale better, and we brought in internal technology to enable that.”

Beyond internal tech changes, external events have also led the organisation to adapt.

The CTO notes that consultancy has become more challenging over the past couple years, largely due to macro factors like the UK general election, which has slowed government spending.

“Since we work extensively with government and its supply chain, that’s had an effect.

“That's why we feel that managed services are a good business model.

“Overall, the business has shown steady growth year-on-year, even if individual streams fluctuate.”