To say that starting up an ICT business when seriously ill is a 'challenge' would be to greatly understate the achievement of CEO Roy Shelton, founder of Cheshire-based ITS Technology Group.
The company emerged from the desperate straits of a hospital bed where questions of survival were also high on the agenda. But determined to rehabilitate himself against all the odds Shelton's eventual triumph confirms a simple fact of life - you can't keep a good man down.
Shelton was diagnosed with pancreatitis necrosis in June 2010. He spent the following six months in The Royal Liverpool Hospital and his chances of survival were described as 'slim'. He missed the birth of his son Charlie, and credits family support and the supreme skills of hospital staff for his eventual return to health. "Without this overwhelming support I wouldn't be here today, and neither would ITS. I wrote the business plan on the slow road to recovery," he said.
The company was established in March 2011 by Shelton and John Bookless with funding from DropJaw Ventures (Shelton's investment firm), and remains wholly privately owned. "Our mission has always been to offer end-to-end IT and comms solutions in a disruptive way," explained Shelton. "This includes superfast connectivity and cloud offerings such as Microsoft Office 365, SharePoint, VoIP and Lync, all wrapped in a support package for SME and mid-sized corporates."
DropJaw Ventures, which Shelton runs, invests in promising new and emerging technology companies. Following successful investments in organisations like Next2Friends, which was sold to Myspace, The Wedding Vine (Shelton is still involved in this company), and an 18 month stint working for a VC funded firm, he spotted an opportunity in the IT and comms market. Important acquisitions were to follow.
"Our first acquisition of TMGIT in December 2011 enabled us to secure long-term revenues from a strong roster of quality clients including Mars and Akzo Nobel," stated Shelton. "It also safeguarded the jobs of a superb team of engineers. Many are still with ITS, and our customers like the fact they are still working with the same team that has more than 12 years continuous service."
With the help of angel investor Paul Ruocco, Shelton bought John Bookless' shares in 2013. He decided to grow the business significantly, setting aggressive goals that included tripling revenues that year. ITS then acquired Icomm in June 2013 and made three more acquisitions last year - CityServe, Networks by Wireless and Xwavia. "As the market tightened we kept a look out for companies that were being forced into administration and were a good fit for the business," added Shelton.
"We have not only acquired the assets but ensured jobs while strengthening ITS's proposition. For example, we now have a platform to work on with our partners to secure BDUK vouchers for SMEs in Manchester. We've scaled the technical team and engineering resources, particularly around fixed wireless access models, and also become one of the biggest FibreSpeed partners in Wales."
During this period of activity ITS grew from two offices and 11 staff to an operation working out of eight offices including an international operation in Canada, with a total headcount of 55-plus, eight of which are graduates or apprentices. "We are still recruiting," noted Shelton. "Our priorities are to hire more engineering and technical support staff to address ITS's growing order book and expanding client base. I am passionate about promoting from within and giving people a chance to shine. But it is also vital to bring new blood into the business and we have created apprenticeships that give young people a chance to build a career in a fast-paced and dynamic environment."
Ironically, Shelton would not have made it onto the ITS graduate scheme - but you can't keep a good man down. "I left school without a qualification to my name," he said. "After a few jobs, I started my IT career in sales at a small software firm. I quickly moved up the ranks to become a Director at Nortel Networks, and then a VP for EMEA at a BT company. Having cut my teeth in senior management, which included 25 rounds of funding and acquisitions - along with completing a degree in Business Studies and an MBA from the Open University - I decided the time was right to start my own company."
Growth has been rapid and one of Shelton's favourite buzz-phrases perfectly sums up the ITS way of doing things - 'ITS is not a place for the faint-hearted, you will need to operate at 1,000mph with your hair on fire!'. Aside from fanning the flames of a burning ambition Shelton attributes the firm's fast growth to a trio of other hot spots. "We are growing organically as our customer base moves to an end-to-end solution, which mitigates cost, operational risk and complexity from their business," he outlined. "Our work with channel and technology partners such as Fluidata, InClarity, Motorola, Telcore, TalkTalk and Virgin is also important. Thirdly, we continue to invest heavily in our channel programme. We want to acquire new partners and customers to reinforce ITS's original vision of being an end-to-end solution provider with a direct and indirect route to market."
As a privately owned company, cash, as always, is King. And maintaining a lean cost base while investing the right amount of money in the right area of the business is a top priority. "We must remain efficient and nimble, driving profits harder and ensuring we are in a position to react to market changes and opportunities as they arise" added Shelton. "We are a disruptive company focused on delivering what the customer needs. Therefore, sales, support and technical expertise are crucial.
"Rapid growth comes with pain and we need to ensure we have the right people who are trained and supported. Our channel partners have been patient and supportive, and we are now in a position to embrace these relationships and significantly step up this side of the business."
Finding a balance between short-term revenues to fund growth and overheads while growing a long-term recurring revenue stream is grist to the mill of most ICT providers. So not surprisingly, Shelton doesn't undertake adhoc projects with a non-recurring revenue model. "We have a mix of capital and operational incomes from all that we do," he explained. "This allows us to scale and have predictable revenue streams, creating greater value for all stakeholders."
The proof of Shelton's recipe for success is in the eating and this year he is on track to triple the size of the business having secured a number of IT managed service contracts and customer wins totalling more than £10 million. "Everything I have done has brought me to this place," he said. "I am lucky to have worked with many great people over the years, and on delivering complex solutions in 42 countries. But I am most proud of being at the helm of ITS. We have a great team, great customers, supportive partners, and we have created and safeguarded almost 60 new jobs, making a difference to a lot of people."