Kick ICT adds Turnkey divisions in growth surge
Tom O’Hara: ‘well-placed’
Kick ICT, the single source IT group, has acquired Turnkey Business Software (TBS) and Turnkey Infrastructure Solutions (TIS) from the Turnkey Group.
The deals are Bellshill-based Kick’s sixth and seventh in the six years since it was founded by technology entrepreneur Tom O’Hara.
They mark a key strategic move in Kick’s growth in the SME market. The deals add a further 15 staff and more than £3m to turnover.
The Turnkey Group has been serving customers since 1980. Barry Wood and his son Tony Wood have built a Scotland-based group of companies with a global reach and have developed their IPS insolvency product to be a world market leader.
Turnkey is now focused solely on the global growth of its IPS product following the release of its SAAS version.
Mr O’Hara, said: “TBS and TIS have a long standing and outstanding reputation in the market and I’d like to thank Tony and Barry for affording us the opportunity to look after their customers and their people ongoing.
“It’s clear Tony and Barry had a myriad of options available to them and it’s a huge compliment for them to have endorsed our vision, strategy, culture and values. I wish them every success as they continue to build the Turnkey Group and IPS as a global software brand and I very much look forward to collaborating with them in the future.”
He added: “Kick has made excellent progress this year, adding Clyde, TBS and TIS to the Group over the last five months. Our cash reserves and great support from HSBC provides an excellent platform for growth and ensures we are well-placed to continue growing and building market share both in Scotland and more widely across the UK.”
Mr Wood said: “Kick ICT approached us earlier in the year with a proposal, and although we are sad to see TBS and TIS leave the Group, we felt that we have similar cultures and values, and that Kick ICT can continue to develop and invest in their future growth.”
In its accounts for the year ending September 2020 Kick ICT saw turnover increase by 10% to £14.6m, profit before tax rise by 12% to £1.7m and recurring revenue increase 11% to £8.6m.
Kick currently employs 140 staff and expects numbers to increase further by the end of the year following the launch of the ‘Kick Academy’, a project aimed at recruiting and developing school leavers and graduates.
Advisers to Kick ICT Group: MBM (legal), Robb Ferguson (accounting and tax)
Advisers to Turnkey Group: Macdonald Henderson (legal), Armstrongs Accounting Services (accounting and tax); Leslie Corporate Finance (Corporate Finance)