I am pleased to present Incremental Group’s annual review for the financial year ended March 2019. This is our second annual review and I am delighted that this year has seen us continue our growth, allowing us to build upon the progress we made in FY2018.

Our core beliefs remain intact: digital technology can help every organisation achieve more; and sustainable success is achieved through incremental improvement.  These beliefs continue to provide the cornerstone upon which the foundations of our rapidly expanding organisation rest – and this year has been a year of exceptional growth.

REVENUE FY2019

£12.4m


+90%

I am delighted to announce that we have achieved revenues of £12.4m delivering EBITDA of £1.8m in FY2019.   We closed FY2018 with revenues of £6.7m and EBITDA of £1.0m.  We achieved this growth whilst also remaining focused on strategic investment.

In FY2019 we completed our Glasgow office move and over the course of the year we have settled well into our new flagship office in the Merchant City.  The Garment Factory building has provided a base from which to grow where both customers and staff alike can work effectively and flexibly.  It has allowed us to support many community groups and has acted as a beacon for our recruitment activity in the city.

We have continued our investment in our office space during the year by completely refurbishing our Inverurie home.  This refurbishment significantly modernised our Inverurie office which had remained largely unaltered since its construction in the early 1990s.  I am delighted that we now have an Inverurie office which meets the standards we set with our flagship office in Glasgow.

Through FY2019 we doubled the number of Incrementalists to 130.  This growth has seen a diverse range of people join us and I am proud that we remain focused on diversity as an enabler for our growth.

We have continued to invest in our commercial function with our sales and marketing teams increasing significantly this year.  The step change in the scale of the function has had an immediate impact and I am excited with the momentum that our team is building for FY2020 and beyond.

FY2019 saw us complete our second acquisition.   Gap Consulting was a specialist Microsoft Dynamics 365 Customer Engagement partner employing around 30 people with an excellent reputation for delivery.  We completed this acquisition during the first quarter of FY2019 and see huge opportunity for this business to grow well over the coming year.

Our acquisition of Gap Consulting proved to be a pivotal moment.  In the days and weeks following completion we reviewed the huge progress we had made in our first 18 months and it became clear that we had already reached a crossroads.  Our view of the market opportunity had increased, as had our collective ambition and we quickly recognised that a refinance would help us realise our full potential.  I am delighted that we completed this refinance at the end of November 2018.

Our refinance marked the end of Phase 1, where we had focused on building a platform for long term growth. Our investors played an important role during that phase and I am pleased to have been able to work with both Maven Capital Partners and the Scottish Investment Bank during our first 2 years.

Phase 2 begins with a new investor: Dunedin. Based in Edinburgh and London, Dunedin is one of the UK’s leading private equity investors and I am delighted to welcome them as part of our team as we build on the momentum we have established.

We continue to invest in our core capability ensuring we have the right people, the right skills and the right processes to deliver for our Incrementalists, customers and investors as we build toward our stated ambition of £75m revenue. We have invested in our project management and service delivery management capability and have appointed our first full-time quality manager reporting directly to the CEO. The quality of what we do is crucial to our success and we continue to make this a strategic priority.

REVENUE TARGET FY2022

£75.0m


Looking forward, there is huge opportunity for our organisation.  In an ever-changing world, digital technology continues to disrupt and transform every industry.  Organisations understand better than ever the positive impact digital technology can have and the demand for services and solutions we offer customers continues to increase.  To match this demand our ability to deliver has never been broader or deeper.

Here’s to another successful and exciting year – onwards!