Blue Cube Security's sales top £12m

West Sussex-based security VAR doubles best-ever revenue tally but says sales with established vendors such as RSA are down

Security VAR Blue Cube Security says a surge in business won through larger systems integrators helped propel it to a record revenue haul.

Blue Cube's turnover hit over £12m in the 12 months ending 31 December 2015, roughly double its previous record of £6m, CEO Gary Haycock-West told CRN.

The West Sussex-based outfit is increasingly being pulled in as an expert in its field to work on larger deals, Haycock-West said.

"We have seen a noticeable increase in activities with some of the SIs," he explained.

"They may have a security practice, but when it comes to doing detailed work, they haven't got all the capabilities they need so engage with us to work on our behalf. It's a bit like going to the GP with the SI: when they have to get referred they are coming into our laps."

RSA Security has generated as much as 30 to 40 per cent of Blue Cube's business in years past but Haycock West said his firm found more success elsewhere last year.

"We have partnerships that are yielding good returns with people like Arbor, Tripwire and Fortinet," he said.

"A good old stalwart like RSA, which we've sold since day dot, seems to have lost its way a little bit and we've seen sales drop off with some newer technologies coming through. I've been in the IT business for 36 years and running my own business for a fair chunk of that, and you find you need agility in the market."

Haycock-West (pictured, right) said the recent acquisition of several niche security VARs, among them Accumuli, Sysec and NTS, had "left opportunity on the table" for Blue Cube.

"What seems to happen is they get swallowed up by a large business and then disappear, and from our perspective it seems to take out the competition," he said. "We are winning business because we are good at what we do and are accredited in what we do, but it is true to say there are fewer VARs of our size around."

Asked whether Blue Cube itself would consider selling up, Haycock-West - who is Blue Cube's majority shareholder - said it is a case of "never say never".

"We are in an acquisitive sector, and I'd be lying if I said people weren't knocking at our door," he said. "But it's all about why would you sell. Of course, there are the obvious financial gains, but we're a strong, vibrant, very profitable and growing business and we are at a point now where we are enjoying the growth and the notoriety in our sector. I wouldn't ever say never, but someone would have to turn our heads with a big cheque to make us look at that."

Blue Cube Security only files abbreviated accounts and Haycock-West would not break out detailed numbers. But according to the firm, sales were up 277 per cent last year, with gross profit up 167 per cent.

"We have expectations of being in a similar place or better for this year, thereby becoming a trend, not a spike," Haycock-West said.