Software Contract Service and Bespoke Development Company For Sale

Business description

A first class company which specialises in providing software support to Local Government Authorities and also web-based and tailored software for mobile / field-based workers.

This professional business commenced trading in 1998 to maintain large Local Authority Computer Systems. They quickly recognised the opportunities in the emerging mobile workers sector and developed high quality software solutions for this sector. By either integrating off-the-shelf packages with the customer’s existing systems, or by creating bespoke applications for them, they find an approach that perfectly suits their needs.

The company also has a profitable website design and build department. In all, the business is now split giving them the best of both worlds in that they receive up-front income from the contract driven Software maintenance sector and steadily increasing income from the new technologies. Important in the current economic climate is that they are not reliant upon any single market.

The customer base ranges from small private businesses through to large local authorities with applications spanning a wide range of industry sectors

They have partnership arrangements with clients who use handheld and mobile technology in conjunction with bespoke and / or tailored solution software and dynamic websites.

The company provides excellent standards in all that it does and this is reflected through its first-rate website and bespoke in-house management software. The key is its knowledgeable staff who, through solid customer relationships, offers a more personal touch as well as sound technical expertise.

The business recognised the opportunities of providing software solutions for mobile workers and has become a leading supplier of specialist software solutions to suit each customer’s specific requirements.

For one of their leading customers, they wrote a software solution which in return for the customer making a minimal investment of less that a ½ year salary, that customer was able to save / re-allocate 4 administrative posts. Replication of this service is available to all customers and is invoking a great deal of interest from many of the major industry front-runners.

Services aimed at business clients include business critical support, server integration, on-site set up, maintenance options, Internet connectivity, remote networking, project management, consultancy, security, website design and bespoke software. They currently have several ongoing and growing annual maintenance contracts.

Property information

Property:

Leasehold

Leasehold rent:

£22,000 per annum

Location:

The business is located in state of the art offices on a modern business park within striking distance of a major city centre in South Yorkshire. It has easy access to the principle motorway network allowing it to be able to service its entire UK wide customer base within easy – and practical – time scales.

Premises details:

The premises measure 2000ft2 spread over 2 floors with the company holding the head lease and currently occupying the first floor. They have sublet the ground floor the lease for which is subject to review in July 2009.

Head lease rental is £22,000 p.a.

Other information

Expansion potential:

The business would particularly suit a company looking to expand its customer base or extend its own product range into other areas, or a software company looking to diversify into the buoyant mobile solution software sector.

This enterprise could build on the small business sector by taking a more aggressive approach towards sales and marketing.

The future of providing paperless solutions coupled to instant communication with mobile workers is immense. The company has grown to its current size through the determination of its programmers and other staff but has lacked a dedicated sales and marketing team.

Competition / Market:

In the past, business has been mainly gained through referrals. However, the website was re-designed to showcase the company and as a result of sponsored promotion through Google, this now provides a regular supply of good quality leads. Additional marketing material such as brochures is also available. The company’s management currently undertake all external sales visits. There is a large tender marketplace for offering Information Technology packages. More focus on this area would increase steady income streams for the company. The company has recently entered the US market which has already attracted the interest of a major supplier to the SME sector which would double the sales.

Support & training:

The current strong management team would be willing to stay with the company

Reasons for selling:

The Managing Director, having successfully run the company for several years, wishes to explore other business interests. However, should the purchaser require the services of the whole existing management team, the MD would consider this for a limited time. This would provide an excellent opportunity for an existing company with a strong customer base wishing to extend their product range with technically superior software for a rapidly growing market sector. It would also suit a company who have existing software development capabilities who wish to take and develop a proven product with an immense growth potential.