North East software solutions firm Technology Services Group has seen its earnings jump by 50% following a year of investments.
The tech firm, which moved its headquarters from Gosforth to Quorum Business Park last year, was launched by entrepreneur Graham Wylie, founder of listed software business Sage.
Accounts have now been published by the firm, covering the year ended March 31 2019, showing a 3% rise in turnover from £33.5m to £34.5m.
Operating profit before exceptional items jumped from £423,000 to £824,000 and last year’s overall loss for the year of £520,000 was converted to total comprehensive income for the year of £100,000.
Meanwhile, adjusted EBITDA rose from £1.5m to £2.25m, an increase of 50%.
A report accompanying the accounts details how the firm made internal IT investments, as well as committing expenditure on its platforms.
TSG offers a range of products including Tribe, its membership software launched in 2014 which was the first product the company built from scratch in a decade, and Traveller, a complaints management system designed specifically for the travel industry.
In a report accompanying the accounts, chief executive and chairman David Stonehouse said the ‘delay repay’ solution Traveller had continued to produce strong returns, adding: “And with additional development during the year, is expected to see further growth and continued success.”
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But the firm’s strategy for its Tribe product was challenged, thanks to evolving market conditions.
As a result, the firm carried out an impairment review, based on anticipated value in use, resulting in a charge of £341,000 against the value of Tribe.
In the report, Mr Stonehouse said: “The business continues to enjoy improved results year on year.
“The business’s commitment to continuously improve its standards of delivery is ongoing, during the year the business has invested significantly in its internal IT platforms in order to ensure we deliver an exceptional customer experience.
“There remains a strong strategic focus within the business on building our own software applications which complement and enhance established platforms.”
Looking ahead, Mr Stonehouse said: “TSG has the strategy, structure, product suite, and most importantly, the people to deliver in this changing market place and is well placed to take advantage of the opportunities available.
“The business has taken and will continue to take steps to ensure profitability whilst continuing to focus on delivering a first rate customer experience.”
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Following the publication of the accounts, Mr Stonehouse added: “It was good to see growth, particularly of 50% in our (adjusted) Ebitda for 2019, which is testament to delivering our strategy. We expect further growth in 2020 despite the current economic uncertainties.
“We continue to invest heavily in our systems and people capabilities to improve our customer awareness and experience, which in turn is enabling us to better deliver to their expectations efficiently.”