CEO Review

All about growth

FY2018 has been a successful year that has provided Incremental with a solid platform for further significant growth. A strong sense of purpose, vision, ambition and values have driven revenues up by 60% and increased EBITDA by almost 100%.

The business has had even more impressive momentum going into FY2019.  This early growth enabled us to restructure and strengthen our organisation to prepare for further rapid expansion.

Investments in governance, leadership and the commercial and people functions have been key. Other significant developments included the opening of 3 new offices across the UK and achieving ISO9001 and ISO27001, demonstrating our commitment to quality and security.  Most recently we successfully completed our acquisition of Gap Consulting Limited, a leading Microsoft Dynamics partner.

Market

A cloud and AI enabled future for all

The core markets in which we operate have experienced prolonged financial austerity, stagnant productivity and increased competition driving organisations to invest in digital technology. The commencement of GDPR, continued uncertainty around Brexit and the lack of gender diversity have also had an impact across all our markets.

Key technological trends of the last year have been the move towards service infrastructure and accessible intelligence. Also, with legacy technology coming to end of life in some areas, there has been a surge in the number of organisations undergoing technology refreshes and this is set to continue. Dynamics and Office have emerged as the core platforms for Microsoft, and Microsoft’s commitment to a Cloud and AI enabled future with these products is clear.

Strategy

Digital transformation with end-to-end intelligent business applications in the cloud

Incremental’s purpose is to enable government and industry to digitally transform, one step at a time. The main way we help organisations achieve this is by delivering end-to-end intelligent business applications in the cloud using the Microsoft Dynamics platform. We are targeting the creation of more than 500 jobs, annual revenues of £60m and £10m EBITDA by FY2022.

Performance

Significant growth and investment in FY2018

Incremental is delighted to have delivered 60% revenue growth and almost 100% EBITDA growth in FY2018. Revenues have increased from £4.0m revenue in FY2017 to £6.6m. Notwithstanding FY2018 being a year of heavily reinvesting the returns from our scaling revenue and margin improvement, our EBITDA for the year broke through the £1.0m threshold for the first time.

People

Growing a diverse, flexible, digital workforce

To support our actual and forecast growth, we increased headcount by almost 80%, increasing to over 70 employees by March 2018. We are also well on our way to achieving a representative gender balance, with 45% of our employees being female.

Over the course of the year we launched our first formal women returner programme, partnered with Digital Xtra Fund to give young people support to learn digital skills, signed up to the Scottish Business Pledge and brought talent acquisition in-house.

Customers

Building relationships for the long term

The success of our strategy to grow through diversification of service offering, sectors and geographic coverage is most evident when reviewing our project delivery and customer list for FY2018. This year we have worked hard to expand within longstanding customers including Aberdeen City Council, Air Liquide, ASCO, Harbro, Hoover Ferguson and Proserv. We have also secured and welcomed new customers including Scottish Leather Group, Total, Scottish Social Services Council, Aggreko and Skills Development Scotland.

Financial Statements

A year of growth

Our full Directors’ Report and Financial Statements for year ended 31 March 2018 are available to download as a PDF.