Jones opens up on UKFast's 2015 profit rocket

EBITDA up 10 per cent to £16.25m

Lawrence Jones has said UKFast's decision to build its own datacentres is paying off, partly contributing to a profit rocket at the firm in 2015.

Yesterday, UKFast announced that sales at the firm last year rose 18 per cent annually to £34.3m and today Jones (pictured) told CRN that EBITDA for UKFast rose 10 per cent to £16.25m over the same period.

He said that his company is enjoying the benefits of building and owning its own facilities.

"Profit-wise, over a period of time we have managed to build our own datacentres and one of our mantras is to try to solve the biggest problem we might have," he said.

"Two years ago, renting datacentres was causing a couple of issues - we were not getting the right levels of service we needed to deliver to our clients. The sheer cost of outsourcing something like that was astronomical. We invested and built our own datacentre, and now we have four. We don't have to outsource any of it. There are huge cost savings now.

"We've got 1,000 racks in Manchester and owning the land and the building has not only saved us costs now, but is future-proofing us so we don't have to put up costs for our customers. We've bought our own buildings so as we have expanded from 10,000 square feet to 50,000 square feet in Manchester, we have a fixed cost and we have paid that building off more or less."

Last month, UKFast appeared 33rd on the Sunday Times Best Companies to Work For rankings in the small business category. The firm boasts perks such as yoga classes, and a nap room for sleepy staff.

Jones said that creating a good company culture is essential for UKFast and said the firm is even building its own dog kennels.

"We're building dog kennels here so that people can bring their dogs to work," he said.

"I've got dogs walking around the office - one guy in particular brings his King Charles Spaniel in - I haven't got any problem with that.

"I know that it costs an awful lot of money for dog walkers and actually, you don't want to go home and see the dog has chewed up the sofa. If you go on holiday, it would be nice to have a place you know a friend is walking the dog every single day. That's only a tiny part of it, but it gives you an idea of the lengths we would go to for the team. Why wouldn't I?"

Last year, data privacy shot to the top of the agenda for a number of customers amid ongoing changes to legislation about data residency.

Jones said buying British is increasingly important to UK businesses, but he said UKFast was boasting about its local credentials well before the topic became so hot.

"We've always been harping on that we're British - it is our name and our colours and our DNA," he said.

"Everything about us is British, it has always been a part of us.

"I think it is more interesting now because the market is saying we want to buy local from British business. Government wants to buy from SMEs and stop giving these contracts out to international business. We've not specifically gone after that."