Irish IT giant Version 1 topped €100m in sales last year - but it's worried about the pound
The software services group has been on an acquisition spree in recent years.
IRISH IT SERVICES firm Version 1 broke the €100 million revenue mark last year – but it’s worried that currency fluctuations from its growing UK business will hit it down the line.
Founded in 1996 by Justin Keatinge and John Mullen, Version 1 licences software and sells IT services to other businesses. Its offices are spread across 10 locations in Ireland and the UK.
New consolidated accounts for Version 1 Holdings Limited show that the group recorded a 22% spike in revenue last year, bringing its total sales to more than €104 million for the 12-month period.
The company’s profits also edged up to an after-tax return of just under €11 million for the year, compared to €9.3 million in 2016.
Keatinge, who stepped down as the company’s CEO last year, previously told Fora that Version 1 was targeting €1 billion in annual revenue within the next decade.
However, in a note included in the directors’ report for 2017, the firm identified currency fluctuations as one of the main risks facing the group and its ongoing growth.
Several of the group’s subsidiaries trade primarily in sterling, which has plunged in value against the euro since the UK’s decision to leave the EU.
Version 1 chief executive Tom O’Connor (right)
The directors noted that revenue rises last year were as a result of both organic growth and acquisitions made in 2016.
However the firm’s directors warned in the accounts that the “growth target set may not be achievable” if the group cannot find suitable acquisition targets.
Earlier this year, Version 1 completed its sixth UK acquisition in the past five years when it took over London firm Cedar Consulting. As part of the announcement, Version 1 said it had a “pipeline of UK acquisitions planned for 2018 and beyond”.
Hiring drive
The Version 1 group employed an average 730 employees during the year, paying an average salary of €67,500. Some €274,965 in share-based compensation was also paid out to employees in 2017.
Version 1′s main firms were last year re-registered from unlimited to limited companies, requiring them to file public accounts for the first time since 2010.
Last year, the company received a €90 million funding injection from London-based private equity firm Volpi Capital. The deal involved the UK investor acquiring a majority stake in the Irish firm.
Following the deal, Version 1 founder Keatinge left his role as chief executive with Tom O’Connor taking over.
Version 1 also announced it planned to go on a big hiring drive over the next three years after the cash injection. Overall, the firm said it would add another 365 jobs to the group over a three-year period.
Recent staff figures released by Version 1 said that its total headcount stood at more than 1,100 staff. Some 400 of these employees are based in the UK.
