Independent cyber security business Adarma has enjoyed a record year, with revenues rising 27% to £41m.
This is the seventh year of consecutive double digit growth for the Edinburgh and London-based business, and follows a 24% rise to £32m in 2018. It is the first year-end since mid-market private equity house Livingbridge supported an MBO in May 2019, and represents significant progress following the initial investment.
In addition to the record growth in turnover, the business has invested heavily in building out its infrastructure and has made significant investments in people and products. Headcount has continued to grow to support both client delivery and innovation, with permanent staff numbers for 2019 totalling 237, compared to 171 in the previous year.
These investments have enabled the business to deliver exceptional renewal and retention rates during the year, becoming a trusted service provider to a number of major household names across sectors including financial services, retail, ecommerce and travel.
One of the key growth drivers has been Adarma’s multi-tenanted security operations centre that provides world class 24/7 managed detection and response (MDR) services to over 15 of the UK’s most recognised companies.
Professional services continue to generate a significant proportion of the company’s revenues, with around 50% of sales driven from one of Europe’s most highly accredited teams of security practitioners. The team includes almost 100 employees, augmented by up to 50 third party contractors that Adarma can call upon to deliver both tactical projects and multi-year programmes of transformational work.
Resell revenues have also increased over the course of the year, as the company demonstrated its ability to allow customers to maximise the benefit of the technology investments they make.The significant growth in turnover has enabled the business to make these investments and still deliver an impressive bottom line performance. Steady gross margins of around 34 per cent allowed EBITDA to increase by £2m (50%) to £6m.
Adarma plans to maintain this investment programme into the coming year, with its strategy to grow both organically and through strategic acquisitions. The business has placed a focus on developing its products, as well as expanding its geographical reach.
David Calder, CEO at Adarma said, “Given the uncertainty of the economic climate, these record results are testament to the dedication and innovation of the team at Adarma. These values have enabled us to consistently punch above our weight in the market, providing a truly bespoke service to some of the UK’s most revered brands.
“The support provided by Livingbridge has also enabled us to make significant steps forward in terms of our product development, putting us in an exceptional position to continue this growth journey in the coming years.
“We are now looking at building on our strong UK base of operations by expanding our horizons overseas, as well as bolstering our team to provide sustainable growth and continued world class cyber security services to clients.”