IT services provider Ergo reports record revenues, eyes further acquisitions

Irish company is guiding revenues in excess of €74m as it nears €100m milestone

Ergo co-founder and chief executive John Purdy

Ergo co-founder and chief executive John Purdy

 

Irish IT services provider Ergo edged nearer to its €100 million revenue target last year as it recorded its best ever financial performance.

The group is guiding revenues in excess of €74 million for the next 12 months after recording a 7 per cent jump in turnover last year to €68.4 million.

The company reported pretax profits of €2.01 million for the year ending March 2018, as earnings before interest, taxes, depreciation and amortisation (ebitda) rose to a record €3.2 million from €2.7 million.

The group’s net assets increased from €7.4 million to €9.1 million, newly filed accounts show.

Ergo attributed the strong performance in part to gains from Micromail, the Cork-based company Ergo acquired in 2016 for €6.9 million, It contributed revenues of €26 million, well ahead of previous years.

The company, which also bought customer relationship management specialist iSite in June 2015, said it was continuing to eye other potential deals.

“After a number of acquisitions in recent years along with a group restructure, the emphasis in this financial year has been on the successful development of these additions, this will continue to be the emphasis in 2018/19. The addition of a suitable acquisition target is always a focus for management,” it said in a note attached to the accounts.

Ergo, which employs more than 250 people, offers IT solutions ranging from cloud and managed services to software and infrastructure. It was established in 1993 by former EY Industry Entrepreneur of the Year award winner John Purdy and Tim Sheehy as a two-man firm selling toner cartridges for printers.

The company, which is targeting turnover of €100 million by 2020, last year announced 100 new jobs for Dublin and Cork, shortly after reporting a €30 million hike in revenues.

Staff costs for the group rose to €16.9 million last year, as against €15.4 million a year earlier.