Softcat and Sophos are doing rather well, says UK biz survey
Telecoms, enterprise software, and fintech sectors all on the up too
Ten new entries including Softcat, an IT infrastructure provider, and infosec firm Sophos, feature in a list of the UK's top 50 tech companies.
Megabuyte is an independent technology intelligence company. The firm ranks tech businesses according to their performance in key areas, including: growth; profitability; operating cash conversion; free cash flow conversion; and size.
The top three firms in the list were: Quartix, a vehicle tracking business; FDM Group, an IT service provider and GB Group, an ID verification software company. More than half of the companies in the list are in the telecoms, enterprise software, and financial technology sectors.
Megabuyte looked at more than 300 UK-headquartered public and privately owned software, IT, and telecoms services companies in its database.
Ian Spence, founder and CEO at Megabuyte, said: “The Megabuyte Scorecard was developed to identify what a ‘good’ tech company looks like, pooling over 50 years’ collective analyst experience.”
Companies were only considered if they made more than £10m but less than £100m revenue in the last financial year before interest, taxes, and loans were deducted. They also had to have made more than £1m revenue in the last four years. If the company was a subsidiary of a larger company or had been had increased its growth by acquiring another company recently, it was disqualified.
Spence said that the results showed that the UK tech industry is thriving: “The top companies are still growing organically in double-figures. Even the lower ranked ones are growing – albeit slowly.”
This growth could also be because companies stayed away from high-risk areas such as China, he added.
China’s slowing economy has partly been blamed for the decline in share prices of top tech companies including Apple. ®