‘We want to get to £10m revenue in the next three years’: Techsol MD on organic development and acquisitive goals
Gavin Morgan talks UK expansion, Dynamics 365 push, and buyout strategy
Techsol started life in 1996 as a software house to supply manufacturing solutions to a group of companies and retain control over IP development. Now, the Cardiff-based MSP is targeting £10m revenue within the next three years.
The business spent its first 15 years as an internal function before being spun out in 2008 - 2009 to grow organically and commercially, despite launching into the midst of the global financial crisis.
It began to accelerate post-recession and, according to MD Gavin Morgan, “really kicked on from around 2012 - 2013.”
Three years ago, Techsol set itself the goal of reaching £7m revenue with 70 staff.
It is now three years into that plan and has passed £6m, with headcount having grown from 25 to 53.
“Now we want to get to £10m in the next three years and still aim for 70 staff,” explains Morgan, highlighting the company is already ahead of its original trajectory.
Acquisitions and tech goals
In 2022, the company has purchased Cornwall-based GyllyTech and Coventry-headquartered IBIT Solutions.
2024 saw it notch up another purchase - Charlton Networks in Tewkesbury, to boost geographic coverage and MSP volume.
“We acquired three small MSPs in the last couple of years to improve our IT services operational standard MSP environment, just to be able to get a sufficient amount of growth traction in that market,” says the MD.
“We’ve been able to acquire because the right opportunities came around, either geographic expansion or strategic acquisitions.
“That’s accelerated growth we’d otherwise have had to do organically.”
In July this year, it bought out Cloud2020, a Microsoft Business Applications specialist located in Gloucestershire.
The firm now plans to push deeper into the Dynamics 365 space, covering both Business Central (BC) and Customer Engagement (CE), with a particular focus on AI-driven workflow automation for SMEs.
To enhance these capabilities, the Cloud2020 team will be integrated into Techsol, while founder and CEO Ian Bourne will retire.
Partners and customers the UK
Techsol’s key vendors include Microsoft, Sage, ConnectWise, and Terra, with a recently opened relationship with Gamma on the telecoms side.
In terms of distributors, the firm works “to a certain degree” with Ingram Micro.
Techsol operates from offices in Cardiff, Tewkesbury, Coventry and St Austell, with plans to expand to two more locations.
The organisation mainly covers the Southwest and the Midlands, but can be national with the ERP side of the business.
Across the UK, the company serves around 550 customers, mostly SMEs, McHugh tells CRN.
Morgan adds that the company focuses more on the “M” of SME, as it usually deals with firms who have between 20 to 70 employees, and has a particular concentration in manufacturing and distribution.
On an international level, the business has no intention to expand outside national soil.
Adapting to changes
With the UK being its only market, Techsol has been less impacted by headwinds in the global economy, while local policy changes, such as the National Insurance increase have had a mild influence.
“Decision-making slowed down, people paused decisions, but technology hasn’t fundamentally changed,” explains the MSP leader.
“We’ve hit some road bumps due to uncertainty, not catastrophic issues.
“We’re not in steel or car industries, where prices and exports are a major issue, but we do feel knock-on effects like project delays, which affects trading levels but not our core business.
“We can absorb changes like National Insurance increases better than hospitality can; it’s more about uncertainty than real damage.
“Right now, it’s not really a crisis, it’s just ‘not great.’”