cooolnew.net

TSG continues year-on-year growth with turnover and profit hikes

2025-04-21 02:59:14 By

IT firm Technology Services Group (TSG) is on the acquisition path, its CEO has said, on the back of further turnover and operating profit rises.

The Gateshead-based firm, a specialist Microsoft Partner that provides a range of computing and AI services, has plans to make up to three acquisitions a year over the next three years, with due diligence work already under way on two opportunities following the purchase of an education-focused accountancy software firm last year.

New accounts for the business - covering the year to the end of March 2024 - show the third consecutive year of more than 10% growth, with turnover rising more than 12% to £39.8m. Operating profits were up 49% to £4.64m, after charging £90,000 to the TSG Corporate Foundation which donates a percentage of the company's profits to charities and community initiatives each year.

Bosses said the 280-strong business, which also has offices in London and Glasgow, had seen improved trading performance year-on-year, including 22% growth in project services revenue and 11% growth in revenue from recurring income streams.

CEO Rory McKeand told BusinessLive: "The growth has come from work all over the UK and we've seen an additional 100 clients, which is brilliant. We have a really good retention rate of over 98% of our clients as well - which is great because technology is a competitive environment with lots of different providers out there in the landscape."

Mr McKeand is now looking to grow TSG turnover to around £100m in the next few years, half of which is expected to come from organic growth. The results have been published following the multimillion-pound management buyout of TSG in July last year in which Mr McKeand and his leadership team were backed by private equity firm Pictet Alternative Advisors, which acquired TSG from founding shareholders Sir Graham Wylie and David Stonehouse.

At the time, Pictet, which controls about £612bn of assets, said the firm had an attractive business model and that it saw the potential to expand TSG organically and through mergers and acquisitions. The first of those acquisitions came in November last year, when TSG snapped up Aylesbury-based multi-academy trust tech provider Dayta in an effort to strengthen its presence in the education market.

That multimillion-pound deal was said to be ideal for TSG, which offers its Academy learning platform to clients so their teams can get the most from the technologies it provides. Subsequent deals in the Midlands and South East are now expected to follow with potential for another on home, North East soil.

Mr McKeand has previously talked of his intentions to build on success of the company over the past two decades and strengthen TSG's position as the "UK's mid-market business tech partner". He also highlighted the introduction of an employee benefit trust set up so that all employees can become a shareholder in the business - a model that will be extended to employees of those companies TSG acquires.

Highly Recommended

BT wins £1.3bn 'overcharging' class action

BT has emerged victorious in a £1.3 billion class action lawsuit after allegations that it "disproportionately overcharged" its landline customers were dismissed. The Competition Appeal Tribunal (CAT) announced today that the claim against BT was unsuccessful, concluding that "overall" the prices charged "were not unfair, and therefore there was no abuse of dominant position." The legal challenge was initiated by Mishcon de Reya, representing over three million customers, with consumer advocate Justin Le Patourel acting as the claimants' representative, as reported by City AM. The claim accused BT of levying excessive prices for "standalone" fixed voice services, particularly affecting older clientele, suggesting an abuse of market dominance, but the Tribunal found otherwise. Proceedings were certified in October 2021, prompting an appeal from BT. This landmark case was the first to test the CAT’s approach to certifying collective proceedings on an opt-out basis. Despite BT's appeal against certification being rejected by the Court of Appeal, the trial proceeded in January and concluded at the end of March. Beyond its implications for the involved parties, this case holds considerable significance for the legal industry, marking the first trial since the collective proceedings regime was established in 2015.

Not just 'shiny tech bits' – how AI could power Liverpool and its businesses to global success

We’re moving from AI hype to reality, tech leaders say – and a global event in Liverpool today heard how the city region can become a leader in AI technology that’s changing the world for the better. The city region’s first-ever AI summit brought together leaders in AI, one of the fastest-growing and most high-profile sectors in the global economy. Speakers included the UK boss of global tech giant IBM, who said Liverpool City Region was “well set to become a leader in responsible AI”. And the summit also heard from North West entrepreneurs – one of whom told BusinessLive that his firm had recently hit a key regulatory milestone that should allow it to start working in the USA. Metro Mayor Steve Rotheram said Liverpool city region needed to stay ahead of the technological curve to make sure it was ready for all future innovations and inventions. He said the summit was “about showing the world what the Liverpool City Region is all about: innovation with heart, technology with purpose and a vision of progress that leaves no one behind". And he said: “Artificial intelligence is a perfect example of this. Not the fancy algorithms - or shiny tech bit - but because, with the right guardrails in place, it can empower us to solve real problems, improve people’s lives, and build a fairer, more equitable society.” The Metro Mayor hailed the success of recent AI projects, such as Alder Hey Children’s Hospital using AI to help doctors diagnose illnesses faster, and the success of the UK’s most powerful industrial supercomputer in Daresbury at supporting innovative tech firms. He said: “Collaboration is key to all of this. That’s what makes this region special. The Liverpool City Region has a knack for punching above its weight. It’s in our DNA. When I was growing up, this was a region known for its resilience and creativity. “We didn’t just follow trends; we set them. Today, we’re taking that same spirit into the digital age. But leadership comes with responsibility. “As AI develops, we need to make sure it reflects our values of fairness, inclusivity, and sustainability. AI should empower people, not replace them. It should build trust, not breed suspicion. And it should create opportunities for everyone. “Together, we will use those ideas to cement the Liverpool City Region as a global leader in ethical, impactful artificial intelligence.” Dr Nicola Hodson, chief executive at IBM UK and Ireland, said she was proud to be in Liverpool as a Widnes native who studied at the University of Liverpool. She said: “This region’s tech sector is booming.” And she added: “There’s a real buzz here which is very exciting to see.” She explained how IBM’s AI experts had worked in fields including healthcare, where AI tech has helped speed up analysis and diagnostics to help patients get treated more quickly. She said this was an “incredibly exciting time in the UK tech industry”. And she added: “Tech is moving faster than it ever has but slower than it ever will, and we cannot afford to be passengers. “ Dr Hodson called this “one of the most transformational periods in human history” and added: “There is little doubt we are already in the age of AI.” She said: “It is clear we’re moving from AI hype to AI reality”, and that AI is augmenting – not replacing – human intelligence." She added that: “With the right governance and guardrails AI can enhance innovation and creativity." Dr Hodson said that according to McKinsey, AI could add $4.4 trillion of value annually to global GDP by 2030. And she said UK government research showed the UK’s own AI industry is expected to grow to £800 billion by 2035. She added that the city region “is well set to become a leader in responsible AI". Dr Hodson ended her speech by saying there were five key questions that people needed to ask when implementing AI to ensure it had the right guardrails and governance in place – including securing and organising data. One of the exhibitors was Antony Shimmin, co-founder of software company MyCardium AI. The Liverpool business, originally spun out of University College London, is using AI to analyse heart scans, bringing faster results for doctors and patients. Antony and his co-founders, Professor James Moon, Professor Charlotte Manisty and Professor Mark Westwood, have been working to get their technology cleared for use around the world. Mr Shimmin said from the stage that the company had now got the crucial FDA clearance it needed to operate in the USA. He later told BusinessLive: “It’s a huge milestone. It demonstrates our commitment to excellence and compliance. So our software has been clinically and technically reviewed, and the AI has been reviewed. to ensure that this does bring about the benefits that we say it does. “So it's huge for the business, allows us to sell into the States and deliver this to frontline clinicians to improve patient care and clinical outcomes.” The company, which is also working to secure UK and EU clearance, has grown organically from its base at The Spine in Liverpool’s Paddington Village, and today employs 24 people and 52 contractors. Mr Shimmin explained that MyCardium’s technology aims to “deliver more precise measurements of heart function to improve clinical decision-making and better inform patients of their conditions". It uses AI to compare and measure scans more quickly that humans could. He added: “We're much more precise than a human ruler, much faster than a human ruler. And that leads to real change in clinical outcomes and decision making.” Other summit speakers included Erika Lewis, chief executive at the national innovation accelerator Connected Places Catapult, who said her organisation had set up a base at The Spine to support local businesses. Meanwhile Northern Agenda editor Rob Parsons hosted a debate on using AI for good, with panelists including Dr Iain Buchan from the University of Liverpool.

Tyneside tech firm Leighton moves to new city centre offices

North East software development company Leighton has relocated its regional headquarters to a prime office scheme in Newcastle city centre. Leighton, which specialises in building software products and optimising processes for customers, had been based at The Core at Newcastle Helix, but has now moved its head office to the 14-storey Bank House in Pilgrim Street. The company has taken space within the Cubo offices, the top two floors of the building that the flexible workspace provider opened up last year. Leighton reached a significant milestone as it celebrates the growth of its team to 100 colleagues following another year of sustained growth. The office – the first site for Cubo in the North East – gives members a 360-degree panoramic view of the city’s skyline. The company said it saw a 31% increase in revenue during its 2024 financial year and is set for another year of record performance at the end of the 2025 financial year, with projected growth in the double figures, through its work with customers including British Airways, Atom Bank, Equans, IAG Loyalty and Greggs. James Bunting, CEO at Leighton, said the relocation reinforces its commitment to maintaining headquarters in the North East while supporting its growing hybrid workforce, who will be able to take advantage of Cubo’s national network of locations. Mr Bunting said: “This transition marks a significant milestone for Leighton, as we continue to invest in an environment where our team and customers can come together to thrive, collaborate and innovate. Access to Cubo’s office network across the UK is important to us as it will ensure all of our team will have access to spaces where great work happens, and our culture comes to life. It also reflects our ongoing commitment to retaining a headquarters in the North East and supporting the growing tech sector in the region.” Last year the business made key strategic appointments, which included welcoming Lee Gilmore as principal solutions architect, and Clare Gledhill as chief consulting officer to lead on the company’s consultancy offering. Mr Gilmore added: “The tech sector in the North East is a growing hub and we’re only going to see more focus, business, and talent around what is already a thriving sector. It’s great to be working with like-minded individuals who are so invested in cultivating and growing the amazing talent already working in the region.”

Newcastle property firm iamproperty to create 100 jobs over coming months

A major recruitment drive has been opened up by Newcastle's iamproperty as it plans to create 100 jobs over the next 18 months. The Gosforth-based provider of technology for online property auctions says it will initially focus the expansion on its residential conveyancing arm, Medway Law. It is part of a move to capitalise on continued rises in auction transactions. To begin with, 20 roles are being advertised across its conveyancing and business support services. In February and March, more than 20 roles will be available for auction specialists. Bosses say the move comes on the back of demand for iamproperty's auction solution driven by buyers and sellers looking for fast sales ahead of the Stamp Duty Land Tax deadline in April. That is when the threshold band on residential properties will reduce from £250,000 to £125,000. Iamproperty, which employs 700 people, is said to be the UK's largest online residential auctioneer and reports that the number of properties sold by auction was up by 28% in December last year, compared with the year before and bidding activity was up 64%. The firm says that auctions can offer 56-day completion timescales from receipt of draft contracts, based on a standard property. Ben Ridgway, co-founder at iamproperty, said: "We’re pleased to be expanding our 150-strong team within Medway Law with these new legal roles. We know some redundancies were faced in the industry before Christmas and are keen to hear from people with experience who want to be part of modernising the property market and driving innovation. "We’re committed to making the moving process better, faster, and more secure for everyone involved, and we’re in it for the long term. We’re looking forward to welcoming successful candidates who share our vision. "The market conditions mean that auction is helping support buyers with quick sales to make Stamp Duty savings and is the current focus of our recruitment efforts. However, we will be creating opportunities in multiple areas of the business as we continue to realise our ecosystem vision to drive real change in the property market." Plans to increase headcount at iamproperty follow several years of the growth, including 2023's investment from private equity backer Perwyn in a deal believed to have topped £100m. Iamproperty was founded by Jamie Cooke and Ben Ridgway in 2009 as they spotted a gap in the market for a property auction service that benefited estate agents and buyers.

Google faces UK antitrust probe in crackdown on Big Tech dominance

The Competition and Markets Authority (CMA) has initiated an investigation into Google to determine if its search and advertising services are producing fair outcomes within the UK. Today, the watchdog declared the commencement of its inaugural "strategic market status designation investigation" under the new Strategic Market Status (SMS) regime that came into effect on 1 January this year, as reported by City AM. The inquiry will scrutinise the effects of Google’s services on UK consumers and businesses, including publishers, search engine rivals, and advertisers. With Google's search services commanding over 90 per cent of search queries in the UK, the CMA emphasised the importance of ensuring these services benefit both businesses and consumers. "Millions of people and businesses across the UK rely on Google’s search and advertising services – with 90 per cent of searches happening on their platform and more than 200,000 UK businesses advertising there," said Sarah Cardell, CMA Chief Executive. "That’s why it’s so important to ensure these services are delivering good outcomes for people and businesses and that there is a level playing field, especially as AI has the potential to transform search services." The investigation aims to guarantee that individuals enjoy access to diverse services and full control over their data, while also fostering innovative services and preventing biased content, according to the CMA. The Competition and Markets Authority (CMA) in the UK is set to initiate a probe with the objective of maintaining competitive advertisement costs, reducing consumer prices, and affording emerging enterprises an opportunity to vie with established tech entities. The CMA has indicated its intent to conclude the inquiry within approximately nine months. "It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal – for example in how their data is collected and stored," said Cardell. "And for businesses, whether you are a rival search engine, an advertiser or a news organisation, we want to ensure there is a level playing field for all businesses, large and small, to succeed." This investigation is part of a wider effort to rein in big tech firms, as signified by Google's 2024 court defeat in the US over claims that it unlawfully sustained its internet search monopoly.

Stock rise sees Nvidia challenge Apple for world's most valuable company title

Nvidia's shares climbed 3.4% on Tuesday to $149.43 (£118.95) per share, putting it on par with Apple following a series of product launches at the CES event in Las Vegas. The tech giant unveiled an array of new offerings, including gaming chips, a personal AI supercomputer, and AI models for robotics and self-driving cars, as reported by City AM. Post-announcement, Nvidia's valuation soared to $4.66 trillion (£3.7 trillion), positioning it as the world's second-most valuable company, just behind Apple. Nvidia's CEO Jensen Huang highlighted the company's AI ambitions and potential growth in robotics, gaming, and autonomous vehicles, referring to robotics as a "multi-trillion dollar opportunity" in his keynote speech. This development follows Nvidia's brief stint as the world's most valuable company last year when its market capitalisation reached $3.43 trillion (£2.66 trillion) in November, surpassing Apple's $3.38 trillion (£2.62 trillion). Microsoft currently holds third place. Central to Nvidia's success is the introduction of the RTX 50 series, part of the Blackwell family, announced by Huang. These new gaming chips promise unparalleled performance and are expected to hit the market this month. Analysts at AJ Bell have emphasised the significance of this launch, stating: "The RTX 50 series will use Nvidia’s Blackwell AI technology to support highly detailed, hyper-realistic graphics." "This launch is a reminder that Nvidia is not just about AI; the business’ success was founded on gaming technology, and RTX 50 implies it remains on top of its ‘game", they said. Another significant announcement from Nvidia's CEO Jensen Huang was the unveiling of Project Digits, a desktop AI supercomputer priced from $3,000 (£2,387). Equipped with the new Grace Blackwell Superchip (GB10), Project Digits offers processing power previously exclusive to large-scale data centres. It can manage AI models with up to 200 billion parameters, expandable to 405 billion when two systems are connected. "AI will be mainstream in every application for every industry. With Project Digits, the Grace Blackwell Superchip comes to millions of developers", Huang declared. The compact design, similar to a Mac Mini, aims to make Project Digits accessible to data scientists, researchers, and students. Analysts predict this could significantly speed up AI adoption across sectors from healthcare to manufacturing. "Nvidia has unveiled something that promises to be faster and better than what’s already on offer", commented AJ Bell analysts. Nvidia also revealed advancements in robotics, including AI models for humanoid robots and a partnership with Toyota to incorporate its self-driving car technology. Huang, the CEO of Nvidia, has forecasted that robotics will become "the largest technology industry the world has ever seen", with a market for humanoid robots alone projected to reach $48bn (£38bn) within the next two decades. By utilising its AI chips and software, Nvidia aims to transform robotics in smart factories, warehouses, and autonomous vehicles. Huang declared that the robotics industry had reached a "technological turning point" due to advancements in AI that allow robots to learn more efficiently by simulating and analysing vast amounts of real-world data. Nvidia also launched foundational AI models on its Cosmos platform, which have been trained on 20 million hours of video data.

Dyson to move workforce out of Bristol and scrap tech hub plans

Engineering giant Dyson is planning to move its workforce out of Bristol and is scrapping plans for a tech and research hub in the city - despite investing £100m in a new building. The company, best known for its bagless vacuum cleaners, will relocate 180 staff to its large campus in Wiltshire. It will mean all of Dyson's South West employees are based in one location. Dyson's Malmesbury base is home to the Dyson Institute, where 185 undergraduate and postgraduate engineers study while working for the company. The move comes despite a major investment by Dyson into a previously planned research and development hub in Bristol. The company, which currently rents office space on College Green, purchased and carried out a top-to-bottom refurbishment of 1 Georges Square in Finzels Reach last year. The £100m Bristol research centre, first announced in 2023, was expected to employ hundreds of extra AI and software engineers as well as the global tech firm’s commercial and e-commerce teams for Great Britain and Ireland. It is understood that Dyson staff will no longer move into the building, but will relocate to Malmesbury instead. The Finzels Reach office block, which is owned by the Dyson family, will be rented out to another employer. Although no date has been set for the relocation to Wiltshire, Business Live understands it will be in spring when the lease on Dyson's rented office expires. Staff members will be given support with the commute to Malmesbury, about 45-minutes' drive away. The news comes less than a year after Dyson announced plans to cut a third of its UK workforce as part of global restructuring. Dyson's chief executive Hanno Kirner said last year the review would ensure the business was "prepared for the future". The campus at Malmesbury was Dyson's head office until 2019 when founder Sir James Dyson moved the company's HQ from the UK to Singapore. The billionaire tycoon has long been a critic of the UK's economic policies and made the decision post-Brexit to move Dyson's headquarters closer to its manufacturing sites and supply chains. Asia also has a free trade agreement with the European Union. Last year, Sir James and his family were revealed to be the richest people in the West of England despite experiencing a fall in their wealth of £2.2bn over the year. According to the Sunday Time Rich List, Britain’s best-known inventor had a fortune of £20.8bn in 2024 - down from £23bn in 2023.

Transport for Wales launches new high speed internet network

Transport for Wales has launched a new full fibre high speed internet network which was installed in tandem with the South Wales Metro rail electrification project. In a UK rail industry first the transport body of the Welsh Government said its wholesale network can be reached by one million people, through new subsidiary venture TfW Ffeibr. Alexia Course, chief commercial officer at TfW said: “We’re extremely proud and excited to be launching TfW Ffeibr, to provide a state-of-the-art high-speed network for companies to use and sell within Valley communities. “We’ve been carrying out huge infrastructure works in the Valleys, electrifying the railway line as part of the South Wales Metro and this presented us with an opportunity to also build the infrastructure for a high-speed core network. “The Metro project is about physically connecting people and TfW Ffeibr is about connecting people in the digital world. At TfW, we’re fully aligned to the Well-being of Future Generations (Wales) Act and this new subsidiary business reinforces our commitment to improving the lives of people in Wales.” Guy Reiffer, managing director at TfW Ffeibr, said:“This is an industry and UK first – a rail infrastructure project that has diversified and utilised its construction to also install a high-speed, full fibre internet capable network. “We’re excited to launch and we’re looking forward to working with teleco companies to provide big-bandwidth full fibre internet for communities that are harder to reach. “For people living in the Valleys, high-speed internet enabled by our core fibre offering will open up lifestyle and business opportunities.” As well as reaching around one million people, TfW Ffeibr is currently accessing the number of business that could utilise the network., which is though accessible to many of the region's business parks. TfW Ffeibr is currently talking to a range of internet service providers and telecommunication (telco) companies over commercial use of its wholesale network. It said: “This will be either to connect towns and villages where an internet service provider is building out those towns or to connect businesses for those internet service providers or telcos, We cannot comment on individual discussions at this stage.” For those using the network TfW Ffeibr will charge a connection fee and for the distance provided. It declined to comment on projected revenues in its first three years. TfW wouldn't disclose the cost of installing the fibre on the Metro network. The bill for electrifying the Core Valley Lines, along with part of the City Line and the Coryton Line in Cardiff, will come in at just over £1bn. Moreover, alternative full fibre teleco, Ogi, has installed a new full fibre leased line connection at Cariff City FC’s training centre at Hensol in the Vale of Glamorgan. The new infrastructure is already boosting the club’s ability to process performance data in real time during training sessions. Ogi is already a well-known name in sport, with Cardiff Rugby, Parc y Scarlets, and the home of Welsh rugby, the Principality Stadium, among its customers. It also has sponsorship deals with Haverfordwest County AFC and the community-owned Merthyr Town FC. Ogi’s chief executive, Ben Allwright, said: “As a big football fan, I’m delighted to see Ogi supporting our home city club, Cardiff City. There’s a real sense of community among City’s supporters – and this plays to our community-centric ethos here at Ogi too. “Bringing our connectivity to the Bluebirds’ training base has the potential to help the teams develop their game and I’m very excited to see how increased access to real time analytics plays out on the pitch.” Huw Warren, head of commercial at Cardiff City FC, said: “Ogi is a strong signing and welcome addition to the Cardiff City family. They’re a Welsh brand making huge strides across the country right now and the support they’ve given since our partnership started has been exceptional. “Ogi’s full fibre technology enables us to do things faster and more efficiently, accessing data in the split seconds that matter on the pitch.

County Durham firm braves Dragons' Den in bid to secure investment

A County Durham couple will become the latest regional business to brave the Dragons’ Den this week. Zara Paul and Aaron Morris are the founders of Choppity, a Belmont Business Park company behind a web-based AI video editing platform which is set to appear on the new series of the BBC pitching programme on Thursday in a bid to secure investment for their start-up. The co-founders and married couple only launched Choppity in 2023 with a vision to simplify the video-editing process for podcasters and businesses. The platform, which was founded in Durham, is already used in production by companies including ITN, Autotrader, Turtle Bay, and Sonatype, with features including AI subtitles, in which Choppity instantly adds subtitles to podcast clips, and Magic Reframe, which instantly turns a landscape podcast into a portrait or square one to make sure every speaker’s face can be seen. Before taking on the Dragons, the pair said their number one target for investment was entrepreneur and host of one of the world’s most listened-to podcasts, Diary of a CEO, Steven Bartlett. Zara proudly represents the LGBTQ+ community as an openly non-binary contestant, and said the experience was “important and deeply personal”. Zara said: “It was an unforgettable moment to be in that room, presenting something we’ve worked so hard on. The setup felt incredibly stripped back - just the two of us and a screen in front of the five established entrepreneurs. It was both nerve-wracking and exhilarating. “The startup world, and the media more broadly, often feel bare of LGBTQ+ representation, especially for gender non-conforming and trans founders. I hope this moment inspires others to pursue their ambitions and know they belong here too.” In a LinkedIn post the firm said: “After months of secrecy, we’re so excited to finally reveal the news. Watch the episode this Thursday 16th January, 8pm on BBC 1 to find out what the Dragons thought of Choppity. For those that have been following our company’s journey for a while, I hope you have fun watching this episode! “We’re extremely grateful for the opportunity to showcase Choppity on a national stage. To all of our users, customers and supporters, thank you for helping us get here.”

IT services firm strikes Birmingham City deal

An IT services company has struck a new deal with Birmingham City FC. Intercity has become the club's official IT support partner for the next three years. The Birmingham-based company will be responsible for upgrading the club's IT systems and cloud servers, providing matchday stadium support and enhancing network connectivity at the training ground among other work. A support engineer from Intercity will also be on site to provide technical support. Intercity has doubled its workforce to 325 over the last five years. This latest deal with League One Birmingham City follows similar tie ups with Warwickshire County Cricket Club and their home of Edgbaston stadium. Chief executive Charlie Blakemore said: "We are incredibly proud to partner with Birmingham City FC, a cornerstone of our local community. "This strategic partnership represents a great synergy between two Birmingham-based organisations with deep and passionate roots in the city. "Our focus will be on helping the football club with its digital transformation, a critical journey that will boost operations and allow them to focus on their performance both on and off the field. "We have always prioritised building strong partnerships within the community and adding Birmingham City to our roster is not only a tremendous honour but a fantastic vehicle for doing good in the local areas we operate in. "There is a real vision and desire from the owners to use football to regenerate places and lives and we will ensure they can do that through the most appropriate use of technology and by driving shared connections in the city." Birmingham City chief executive Garry Cook added: "We took over 18 months ago and the focus was on fixing and building the football club.