Megabuyte50 2024 awards: who's winning in tech?

It can sometimes be challenging to differentiate those technology companies that are genuinely leading the way and gaining ground in their respective markets from the broader landscape of interesting technology businesses across the UK. We're delighted to continue our long-standing collaboration with the team at Megabuyte to shine a light on the real leaders.

The Megabuyte scorecard's rigorous analysis identifies the UK's 50 best-performing software and ICT companies; objectively benchmarking a range of KPIs, including organic growth, EBITDA, cash-flow conversion, and margin expansion.

The 2024 cohort illustrates the rising bar for top performers in the UK tech market. It also provides fertile ground for M&A and growth-capital investment.

What does it take to be a top-50 performer? 

The strongest performers in the Megabuyte50 universe are significantly outperforming the 'rule of 40' benchmark frequently applied to technology companies – many of them are hitting the 'rule of 70'. 

The median performance of the Megabuyte50 delivered:

• just shy of £50 million in revenues
• 29.5% organic revenue growth
• 24% medium-term revenue compound annual growth rate (CAGR)
• 27.5% EBITDA margin 
• EBITDA margin expansion of 1.6 pp
• 110.5% operating cash-flow conversion

Who's leading the way?

This 2024 Megabuyte50 cohort showcase a strong presence across both software and digital platforms (62%), as well as ICT and digital services (38%).

The strong performance of the leading players is evidenced by their attractiveness to private equity (PE) investors. 56% of the cohort have attracted external equity investment from the PE community.

A strong base of companies have delivered impressive growth and performance metrics without the need for external equity capital, with 26% remaining owner-managed. The well-documented challenges in UK-listed equity markets for technology companies is noticeable, with just 18% of the Megabuyte50 being listed in 2024.

In the absence of a shift in IPO sentiment in the London market it's hard to see that metric changing in any meaningful way in the foreseeable future.

The value of PE in driving the success of the Megabuyte50 is clear in the buy-and build-activity that many have as a core backbone to their strategy. The Megabuyte50 completed 53 acquisitions in 2023, with many being serial acquirers. The opportunity to extend and scale platforms both organically and through M&A remains a key draw for PE investors. The range of backers also has an increasingly international flavour, as the larger players look to expand beyond the UK into other growth markets.

2024 Megabuyte50 – Winning companies

Overall best performing company:	CV-Library
Overall fastest-growing company:	Freemarket
Best performing company – Information Management:	Exclaimer
Best performing company – Financial Services:	Freemarket
Best performing company – Business & Consumer:	Serif
Best performing company – Customer Relationship Management:	Partnerize
Best performing company – Human Capital Management:	CV-Library
Best performing company – Security and Infrastructure:	PortSwigger
Best performing company – Industrials:	PE Limited
Best performing company – Business Process Outsourcing:	Acuity Knowledge Partners
Best performing company – IT Consulting:	FSP
Best performing company – Government and Healthcare:	Twinkl
Best performing company – IT Managed Services:	BCN Group
Best performing company – Value Added Resellers:	Omniplex Learning

For more guidance on the Megabuyte50 programme and the UK tech market, get in touch with Andy Morgan.