Measured against seven growth KPIs, the Emerging Stars report identifies the UK's top 25 best financially-performing smaller technology businesses.
Focusing on the Top 25 smaller companies in the UK’s software and ICT services sectors, the report talent spots future mid-market leaders among smaller, UK private and publicly-listed companies.
Using a derivative of Megabuyte’s proprietary Scorecard methodology, which uses seven growth KPIs to score companies' performance out of 100 relative to peers. The Scorecard assesses companies using a combination of seven key measures, covering: growth, margins, cash flow and overall size.
As a group, the Emerging Stars companies delivered average organic growth in their last financial year of 46.4% and an average revenue CAGR over the last three/four years of 38.3%, both well into the top/fourth quartile. However, this growth required investment and, as a result, average EBITDA margins of -0.6% positions the Emerging Stars average in the second quartile, highlighting the diverse profitability performance among the cohort. With that said, the 25 Emerging Stars demonstrate strong margin progression; year-on-year margin improvement averaged 10.3 percentage points. The group’s average revenue size was £6.3 million.
IMS Maxims, announced as Best Performing Company in the Megabuyte Emerging Stars awards, topped the ranking with a Megabuyte Scorecard rating of 97. As a provider of patient administration systems and electronic patient record systems to the UK and Irish healthcare markets, the company was recognised for differentiating itself and delivering organic revenue growth of 41%.
Highlights from the report:
- IMS Maxims, Wifinity and TCP LifeSystems are the top three ranked companies
- Seven of the top 10 Emerging Stars companies are owner managed
- The report highlights a clear sector bias, with Software companies making up 16 of the 25 companies featured
- As a group, the Emerging Stars companies delivered average organic growth of 46.4% in their last financial year
- None of the 25 companies that make up the Emerging Stars List are publicly listed
For more information contact Nick Watson.
For more information visit Emerging Star awards.