TSG buoyed by hike in tech spend

TSG Scotland, the IT services specialist, has pointed to signs of a technology spending revival among SMEs after booking a record annual operating profit.

The firm, which operates from offices in Edinburgh, Glasgow and Aberdeen employing about 100 staff, is on the lookout for further acquisitions after completing two bolt-on deals in the past year or so.

Operating profit in the last financial year grew by 13 per cent to 1.3 million, compared with 2008/9, while turnover was steady at almost 10m.

The group said profit had been boosted by the twin takeovers of Solutions Canvas, an e-commerce and online trading consultancy, and communications specialist Croft Technology, which TSG acquired in January. A further earnings lift came from the launch of new products and services and a move into the public sector.

Until recently, the firm has been focused on small and medium-sized businesses.

TSG Scotland managing director Tom O'Hara said he was confident of a robust outcome for the current year. Firms were being increasingly drawn to "unified communication services" and willing to invest in specialist IT expertise, he said. "Our recent acquisitions have started to deliver exciting opportunities for TSG," he said. "We are also pleased with our progress in the public sector."