SecureData not yet done on services transformation

CEO Etienne Greeff says cloud will be a priority for 2016 following second consecutive year of double-digit growth

SecureData says its efforts to transform into a security services player are still a work in progress as it posted a double-digit hike in sales and profits.

Revenues for its year ending 31 July 2015 increased 10 per cent to £32.5m as consulting and managed services sales went up by a third and fifth, respectively. EBITDA rose by 26 per cent to £4.6m.

SecureData chief executive Etienne Greeff told CRN the firm began its transformation from a product-focused VAR five years ago ahead of its August Equity-backed management buyout.

Since then, it has gone on an acquisition spree that has taken in Riverbed and Palo Alto partner Quadrant Networks, rapid response services player SensePost and security intelligence software outfit Paterva.

"If you look at the numbers, it's difficult to say it has been anything but a fantastic year for us," Greeff (pictured) said.

"It's not just the bottom-line growth, but also the growth in the services we provide. We laid the groundwork five years ago and now it's starting to bear fruit."

Cloud services, via SecureData's Greater Intelligence platform, will be a focus for the year ahead, Greeff said.

"Cybersecurity is an evolving field and our transition is not complete by any stretch," he explained. "But we are where we said we would be by this time and next year will see us delivering a lot more security services from our cloud platform."

A blending in the industry between the traditional roles of VARs, service providers and vendors has shifted SecureData's competitive landscape, Greeff said.

"If you look at Cisco, it acquired Portcullis and OpenDNS. The vendors are starting to acquire capabilities to do high-end consulting services and deliver services from the cloud," he said. "The competitive landscape of the future is not only competing against VARs but also vendors."

For the 12 months ending 31 July 2015, SecureData's managed services revenue rose 20 per cent to £6.2m, with consulting revenue powering up 32 per cent to £3.8m. It is SecureData's second consecutive year of double-digit growth.

The firm said it now has an EBITDA margin of 26 per cent, but stressed its EBITDA figure excluded results for Greater Intelligence service, foreign exchange differences and some other exceptional costs.