Opus Team completed a round of acquisitions in May that signalled the start of a campaign to double revenues in two years, according to Managing Director Mark Castle.
Two months ago the surrey-based ICT solution provider bagged Phipps Communications and BTNS's customer base. According to Castle's growth strategy eight more acquisitions are in the pipeline. Opus Team's expansion capabilities have been developed over a period of time in which the company aligned its products and services to the requirements of today's end users. There is a clue in the company's name - 'Team' - because teamwork between three distinct divisions will enable Opus to fulfil its ambitions.
Castle introduced a 'three-in-one' ethos following the acquisitions of an IT business and a mobile company in 2011, and the creation of Opus Secure which augmented Opus IT and Opus Mobile. "The lack of understanding within many owner-managed businesses about cyber security threats is staggering," he said. "This led us to develop a suite of security products through Opus Secure. There are only a handful of mid-size companies like Opus Team that genuinely service all three industries properly. The evolving needs of our customers and prospects meant that they were looking for solutions rather than singular products and services. This helped to push us towards our 'three-in-one' business technology solutions ideology and the beginning of Opus Team. We will continue to grow organically through cross-selling opportunities while acquiring complementary businesses."
His experience of telecoms companies that 'dabble' with IT and mobile, and vice-versa, is that they don't have the resources, skills and experience necessary to provide a complete and satisfactory service compared to a business that only deals with that particular area. "We didn't want to fall into this trap, so we acquired two specialist companies," added Castle. "We have a flexible approach to acquisitions which means vendors could potentially become employees, exit the business immediately or derive an ongoing revenue from their customers."
During its growth path the company's product portfolio has developed to reflect evolving customers needs, and this evolution has enabled Opus to deal with bigger clients while retaining existing customers. "We listen to their feedback," added Castle. "We constantly refine and review our business model and our product portfolio to ensure we have the correct products and services available. We place great emphasis on keeping up to date with new technology and business trends. A good example is the growing adoption of BYOD and the increased threats and risks this trend has brought, creating the need for Mobile Device Management which we have been offering for 18 months."
Castle began his comms career at the age of 19 in a sales role with three months basic salary at £500. "I had to learn quickly how to communicate, listen and close a deal," he said. "That made me agile and focused. I've used this experience with my team, encouraging them to adapt and look at every opportunity with open eyes. Coming from a sales background, it can be easy to fall into the trap of thinking that success will come from focusing purely on getting as many sales as possible and underestimating the importance of finance and operational processes. In hindsight, I would have invested sooner in advanced IT solutions and quality people who can make a significant improvement to the bottom line."
He founded Opus Telecom in 2000 with three other shareholding directors (subsequently all bought out). The company typically services organisations with 25-200 desks. "While we work with businesses of all types, we are particularly successful with organisations in the following sectors: Charitable, recruitment, fund managers, healthcare and education," explained Castle. "There has been a shift from selling phone systems on cost justification to selling technology solutions that enhance productivity and ultimately profitability. This is partly why we moved towards selling solutions rather than products. As part of this in the last couple of years our focus has switched from selling phone systems to more of our connectivity, hosted applications and security products. These have better margin opportunities, increased reliability and stickiness with customers.
"As we grow, we need to constantly review operations to ensure we are providing the best possible customer experience. We have recently created a single operations team for all three businesses, resulting in better response times and smoothness of processes. It is also important to keep a close eye on finance. We have addressed this with the appointment of an in-house chartered accountant who closely manages all aspects of the finance department."
The most significant market trend according to Castle is the demand for speed and reliability in Internet connectivity. "Then there's the shift from on-premise equipment to applications hosted in the cloud, and increasing interest in UC which drives the need for better connectivity," he commented. "The rise in hacking activity, particularly with SMEs, is causing businesses to think more about security, hence our outreach into the cyber security market with Opus Secure. We are no longer in a singular industry, everything is interlinked and a business like ours, providing all the solutions under one roof, is the perfect answer."