Annodata has acquired wide format print specialist STS, following a year of record profits driven by a combination of strong organic growth and strategic acquisitions.
In the 12 months to June 30 2014, Annodata sales grew 9% to £57.4m, with operating profits up 781% to a record £5.2m. The acquisition of IT infrastructure provider Keltec last autumn boosted the Group’s annual revenue by an additional £15 million.
Funded entirely by Annodata’s existing cash reserves, the acquisition of STS pushes the group’s annual turnover to more than £80 million and increases its headcount to 400.
Based in Wetherby, West Yorkshire, STS specialises in wide format printing – a new area for Annodata – and has numerous clients in both the public and private sector, including William Hill, the Manchester Evening News and the Yorkshire Post.
STS’s existing staff, including Managing Director Peter Langstaff, will be retained, with Annodata’s Leeds office relocating to the STS offices in Wetherby.
Annodata Chairman Martin St. Quinton, said: “STS has an impressive portfolio of longstanding customers including national and local newspaper groups and, much like Annodata, is particularly strong in the housing association market. Vendor agnostic and with a strong, profitable business model, STS is a great fit for Annodata.”
He added: “Over the next 12 months we will look to make further strategic acquisitions like the Keltec deal last year to expand our product portfolio and tuck-in acquisitions like STS, which consolidate our position as a leading provider of print, communication and technology services to the private and public sectors.”
Annodata has a target of £100 million turnover by 2016.