When a new IT firm plans to double its turnover to £60m, that's Amor

Published on Thursday 13 May 2010 20:15

AMOR Group, the IT services business set up last year after a £28 million buyout deal, has laid out ambitious plans to double turnover by the end of 2012 as it targets further overseas business.

• John Innes: Amor's chief executive said increasing international sales was a 'key priority' for the group, with export business likely to make up a fifth of total revenues. Picture: Complimentary

The firm, which was created last May following the acquisition of the Scottish IT services operations of French company Sword Group, aims to achieve sales of 60m by 2012.

Since the private equity-backed buyout, an additional 70 staff have been hired, taking the group-wide headcount towards 400. Headline numbers for its initial year of trading show the enlarged group generated turnover of about 30m.

Reported pre-tax profits for the main trading arm, Amor Business Technology Solutions, came in at almost 4.6m, compared to the 2.7m booked by the Sword Group businesses in 2008. The turnover figure for that year was 23.8m.

Amor, which is headquartered near Glasgow airport with offices in Edinburgh, Aberdeen, Coventry and Houston, provides technology services and support to the energy, transport and public sectors.

It said it had generated new orders worth 23m over the past 12 months. New clients include National Gas Company of Trinidad and Tobago, Oslo airport and Sun Oracle. Chief executive John Innes said the solid outcome for the first year of trading paved the way for the company to achieve its 60m turnover goal.

"We are now firmly established as Amor Group and by delivering these strong results in 2009, we move forward with renewed confidence in our plan that will double our revenue and improve our quality of earnings by 2012," he said.

"Our key markets – the energy, transport and public sectors – afford significant growth potential and we will also identify, acquire and integrate organisations that enhance our capability and position in these areas."

Innes said increasing international sales was a "key priority" for the group, with export business likely to make up a fifth of total revenues in time.

Forecasting "massive changes" in the IT sector, Amor's boss added: "We expect our customers to increasingly rely on third parties like us to design, assemble and deliver the ICT processes, applications, and infrastructure to support their business."

Last spring's management buyout was backed by London-based private equity firm Close Growth Capital and Scottish Enterprise with debt funding from Clydesdale Bank.

Sword Group has retained an estimated 22.5 per cent stake in Amor.

The annual report shows the overall bill for wages, pension contributions and social security costs came to 12.7m. The boardroom bill topped 232,000, with the highest-paid director receiving some 87,700.