Telford computing firm on cloud nine after contract renewed
Cloud computing specialist Nasstar has won a multi-million pound deal to provide services to one of the country's biggest recruitment firms.
In a trading update today, the Telford-based company revealed that the second half of the year had seen it achieve revenues and earnings in line with expectations.
Part of that, the company said, was a result of the renewal of trading with its largest customer, Pertemps Network Administration.
The agreement increased the number of contracted users of the Nasstar's services from 700 to 1,125, generating £3 million of recurring revenues, while the contract comes with the option to extend it from three to five years.
Full-year results for the company, which is based in Telford and listed on the London Stock Exchange, will be revealed on April 11, and are now looking set to expand on the £6.6 million revenue it achieved in the first year – which in turn was a 32 per cent increase on the prior year.
Its recent growth has been bolstered by a string of acquisitions, with e-know.new, Kamanchi and Nasstar integrated into a single company.
In October, the group announced a deal to buy another of its competitors, Vesk Group, which provides hosted desktop services for 520 legal users at 13 law firms.
As part of the group strategy to expand into new markets Nasstar also successfully tendered for G-Cloud 7 status, the latest version of the Government Digital Marketplace framework.
This complements Vesk's own status, and opens up the services of the wider group to potential expansion in the public sector, such as local authorities, schools and other central and local government organisations.
Other new clients brought on board during the second half of the year outside of its traditional sector, included legal, finance and recruitment, demonstrating the expanded capability of the group. Wins included the Royal College of Radiologists and The Royal Aeronautical Society.
In its trading update, the group said: "Trading from the recent acquisition of Vesk has been in line with board expectations.
"Group financial working disciplines have already been rolled out within VESK and the four Group operating businesses are now working closely together to cross sell their respective services across the Group."
