During the year TSG acquired Dayta Ltd and Wren Investments Ltd, parent company to Computer Geeks Ltd
Members of TSG’s senior leadership team (from left to right): Steven Lynn, CFO; Rory McKeand, CEO; Andrew Hayward, CCO; Rob Jones, COO(Image: TSG)
Tyneside software firm Technology Services Group has seen revenues top £41m in a year of acquisitions following a successful management buyout.
Team Valley-based TSG, a Microsoft Solution Partner focused on SMEs, was acquired in an MBO back in July 2024, on the back of significant investment from Pictet Alternative Advisors. The firm’s CEO Rory McKeand and his leadership team joined forces with Pictet to take the tech firm forward in a deal which saw founders Sir Graham Wylie and executive chairman David Stonehouse step away from the company.
Accounts filed by the firm – which counts recurring revenues and one-off consultancy projects as its main business streams – have now been published covering the year ended March 2025, highlight progress made following the MBO. The accounts show a fall in profits amid changing client demand and economic uncertainty, but rising turnover and recurring revenues.
Turnover rose 4.7% from £39.8m to £41.7m, while monthly recurring revenue grew from 65% to 70%. Operating profit, before exceptional administrative costs, was £4.32m, down 7% on the 2024 figure.
TSG’s head office on Team Valley(Image: Google Earth)
The company, which has around 260 employees, said the fall was primarily due to lower project services, income from consultancy, development and installation services. Exceptional administrative expenses for the period were £2.533m, £2.429m of which related to costs incurred though transaction completion bonuses, relating to the acquisition of TSG by Pictet Alternative Advisors.
During the reporting period, TSG acquired Dayta Ltd, which provides accountancy software and other financial management solutions to schools and multi-academy trusts throughout the UK, and South West based Wren Investments Ltd, parent company to Computer Geeks Ltd. TSG said the integration of Dayta and Computer Geeks is “already well advanced”.
The company’s CFO Steven Lynn told The Journal how it is now seeing a bounceback in customer demand with rising revenues from one-off projects.
He added: “We saw more elongated sales cycles as customers started to sweat their assets more than they usually would. Trump was coming in, there was a lot of uncertainty in terms of how things would play out, a new Government came in, so that led to a bit of a downturn in terms of those one-off consultancy projects.
“The fact that we’re still growing our managed services revenue shows the resilience of the business model. That’s why we have recurring revenue to protect against these economic blips.
“We are seeing that bouncing back a bit this year, so we expect to make that deficit back up this year. People are getting to grips with things and seeing investment in tech.
“Even with difficult economic conditions, most businesses still turn to technology – they say ‘how do we invest for the longer term, reduce costs and increase bottom line’ and technology is key to that.”
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