Accumuli gobbles up security VAR ArmstrongAdams

IT security outfit reveals it has sneaked through yet another acquisition as it unveils 18 per cent rise in turnover

Accumuli revealed it has acquired IT security reseller ArmstrongAdams as it announced a rise in annual sales and operating profit.

The AIM-listed security services firm, which has now snapped up more than half a dozen businesses since its formation in 2010, saw revenue for the 12 months to 31 March rise 18 per cent to £16.6m.

According to its preliminary results statement, trading group EBITDA rose 29 per cent to £3.6m although costs associated with its aggressive buy-and-build strategy dragged group pre-tax losses from continuing operations to £0.9m.

Having gobbled up Signify and Equalis last year, Accumuli revealed it has made a further "bolt-on" acquisition since its year end, in the form of IT security reseller ArmstrongAdams.

Accumuli confirmed to CRN the acquisition happened this month.

While Signify and Equalis were for cash considerations of £2.6m and £1.9m respectively, the net initial cash consideration for ArmstrongAdams was nil.

However, Accumuli expects to pay the vendor – who is staying on at Accumuli – £0.8m based on the acquired firm's trading performance over the next two years.

Accumuli now has over 700 customers, 300 more than last year, 85 per cent of which currently only take one product from the portfolio. Sixty per cent of its 80 staff are employed in a technical capacity.

The firm said it finished the year with £3.6m cash in hand.

Nick Kingsbury, chairman of Accumuli, said: "I am pleased to report on what has been another period of growth and transformation for the business.

"During the year, we have successfully completed and integrated two acquisitions, re-organised the business to ensure the necessary platform for future growth, and enhanced the financial strength and visibility of the business, evidenced by 61 per cent of gross profit now generated from recurring revenues."