63. InvenioLSI

Revenue: £70.8m

InvenioLSI, operating under the umbrella of Invenio Business Solutions Holdings Limited, is a leading SAP Gold Partner specialising in SAP consulting, IT solution delivery, and managed services, with a particular global focus on Tax and Revenue Management (TRM). The Group has built a strong reputation as a trusted adviser to public sector tax authorities and media clients alike, leveraging deep sector expertise to deliver complex, high-value projects.

Following its acquisition of Labyrinth Solutions Inc. (LSI) in early 2021, Invenio LSI has been actively integrating complementary capabilities. This strategic move has enabled the Group to cross-leverage Invenio’s Tax and Revenue Management and Media & Education sector expertise into the US market, while expanding LSI’s proprietary GovOne and CampusOne solutions into Europe and the Middle East. This geographic and sector diversification remains a key pillar of the Group’s growth strategy.

In 2022, Invenio LSI continued to serve tax authorities in the Middle East, including Bahrain, Qatar, and the UAE, while broadening its footprint across APAC and US public sector organisations, particularly within higher education. The Group’s Media & Entertainment division sustained strong client relationships with household names such as Universal Music, News UK, and Penguin Random House.

Despite revenue growth driven by the full-year consolidation of LSI, Invenio LSI faced margin pressures due to delayed project completions on key TRM implementations and higher-than-expected delivery costs. This resulted in provisions totaling £5.5m against loss-making projects and a significant goodwill impairment of £81.9m linked to the prior year acquisition. Consequently, the Group reported a net loss of £92.6m for the year ending March 2022, a marked decline from the £6.4 million profit the previous year. Underlying operational challenges, including rising wage costs amid global SAP skills shortages, remain a key focus, with mitigation efforts centred on expanding trainee recruitment and enhancing employee engagement.

Financially, the Group improved cash generation with £2.8m inflow from operations despite higher interest costs, while maintaining a cash balance of £6.0m at year-end. Headcount increased modestly by 5 per cent to over 1,040 employees, reflecting ongoing investment in capabilities.

Looking ahead, Invenio LSI is well-positioned to capitalise on its expanded global reach and sector specialisms, although it remains vigilant on execution risks and labour market volatility. Its dual focus on public sector TRM and Media & Education, coupled with continued innovation and geographic expansion, underpin its medium-term growth ambitions.