72. Chess

Revenue: £64.3m

Chess ICT continued its shift towards higher-margin, cloud-led revenues in FY23, with a sharp focus on gross profit growth and operational efficiency. The Alderley Edge-based VAR reported gross profit of £25.5m (39.7 per cent)—up from £25.3m (36.7 per cent) in FY22—despite a planned dip in cybersecurity licence income linked to renewal cycles.

The business saw margin improvements in its device and mobile sales, while its digital business also showed continued momentum. Its specialist penetration testing unit grew, and licence revenues are forecast to rise in line with future renewal timings.

A standout feature of the year was the group's ability to translate profit into cash, with 96% EBITDA-to-operating-cash generation underscoring the strength of its recurring revenue model. Consultancy, installation and hardware sales also contributed to profit and cash inflows.

Chess exited its cybersecurity division in May 2023 to sharpen its strategic focus on ICT, cloud and telecoms. The move appears to be paying off—Chess reported a 4 per cent increase in gross profit and a 40 per cent jump in EBITDA in the first half of FY24, setting the stage for an annualised run rate of £18.5m (excluding any planned acquisitions).

The company retained its ISO27001 and ISO9001 accreditations and was again recognised as a Top 100 Best Company to work for—marking its 15th consecutive year on the list, including a first-place finish in the North West and second nationally in the large business category.