IDE Group eyes double-digit growth following sale of Connect business

MSP sold off its loss-making Connect division last year to CloudCoCo

LSE-listed MSP IDE Group saw year-on-year revenue growth of 20 per cent, it has said in a trading update.

The figure is based on the company's continuing business only, having undergone dramatic change recently with the sale of its loss-making networking business to CloudCoCo for £250,000.

Plans to sell off its Connect unit were first announced during the release of the business' 2020 results and a deal was later confirmed in October.

IDE claimed the move had made it into a "meaningfully profitable company with excellent prospects" after "three long years".

Its managed services unit continued to make a profit while the company's Connect division struggled. The MSP says 2022 has "begun well with several new contracts won".

It adds that it is expecting "double digit revenue growth" in 2022, of which 85 per cent is from existing contracted customers.

"Last year's results are the result of three hard years' work by all of the team at IDE," chairman Andy Parker said.

"The company is well placed to build upon the 2021 results.

"The board are exploring resolutions for the shareholder loan notes, the only debt the business has, which would be the final stage of the restructuring, and which would allow the company to grow organically and possibly through acquisition should the right accretive opportunities become available".