MTI boss toasts 'very good year, given everything that went on'
MTI's CEO says he is "very keen" to make an acquisition in the next 12 months after overseeing a rise in revenue and underlying profit during an action-packed first year in charge.
Scott Haddow took the reins of the Godalming-based Dell EMC partner last February, on the heels of its takeover by private equity firm Endless LLP.
Haddow said the "latent value in MTI that hadn't really been capitalised on" mirrored the starting point of his previous Endless-backed venture, Trustmarque, but added that MTI is "much further down the services path".
"The Trustmarque business was highly focused on software reselling and we had to build out a services business over a period of six to eight years, with some small bolt-on acquisitions along the way," he told CRN.
"Services is about 35 per cent of MTI's turnover and more than 35 per cent of its profitability, so it was a very different proposition."
But Haddow revealed that MTI has undergone an "enormous" restructuring drive during his tenure and has also invested £2.5m more year on year in the business to bolster its services offerings.
The numbers are in
One of a handful of Dell EMC Titanium Black partners in EMEA, MTI recently published its first consolidated group accounts offering a panoramic view of its operations in Germany and France, as well as the UK.
Revenues for the 15-month period to 31 March 2018 hit £94.6m, which MTI claims is a 12.4 per cent hike when compared with the previous 12 months on a like-for-like basis.
Thanks to one-off exceptional costs of £7.7m - including £1.3m of staff restructuring costs - MTI slipped to a group net loss of £8.2m for the 15-month period, according to accounts filed by ultimate parent Malta Topco.
However, the datacentre and security specialist was quick to point out that underlying EBITDA for the period hit £2.1m, and that operating profit was up on a like-for-like basis.
Haddow billed it as "a very good year given everything that went on".
"If we take the same 12-month period [as the previous year], operating profit was up about 2.5 per cent," he said. "On the face of it, that's not enormous. But bear in mind it was a year of enormous restructuring going on in every geography, from the main board all the way through. There was a lot of investment in our services lines and into our security business and professional services. We've spent about £2.5m more in the last 12 months compared with the previous 12. There was pretty much nothing that wasn't changed in each geography at some point."
Although larger than France and Germany combined, the UK grew the slowest of the three arms, with like-for-like revenues up 4.8 per cent to £50.8m over the 15 months. Its German and French operations grew like-for-like revenues by 19.7 and 25.6 per cent to £19.4m and £24.4m, respectively.
"The UK business probably needed the most restructuring and refocusing during the period," Haddow said. "But we've seen some fantastic customer engagement and success stories from bringing our security and datacentre businesses together, and have seen circa 20 per cent (UK) growth in professional services, so there's significant growth in all the right areas, in the UK specifically, but also Germany and France."
Haddow said the £8.2m net loss is not reflective of underlying trading.
"We've got £2.2m in exceptionals that aren't operating costs and also [£7m] in purchase price adjustments, which is essentially goodwill that doesn't have to be paid anyway," he said.
"The true picture of the business in that year is us doing £2.2m in EBTIDA. That's the column we measure as it throws off the cash."
Haddow reiterated his M&A ambitions, confessing that he is "very keen to make an acquisition in the next 12 months".
"That said, if we don't (make an acquisition) given the caveats we've put on the table, we are very confident we can have a super success story from MTI over the coming year on an organic basis. There is enough growth for us in our emerging markets and from the investment we've put into our services business in the UK, France and Germany," he said.
As for exit strategies, Haddow said it is too early in the deal cycle to contemplate.
"Endless have some stuff in their portfolio they've held for seven, eight, nine years, and some other things they've turned a lot more quickly, but we are certainly not having any exit conversations with them," he said. "In fact, it's the polar opposite: it's about how we can put more capital to work."
- DevSecOpp- Security design / review consultant. SC Clearance. London
CH7838 London £70,000 DevSecOpp- Security design / review consultant. DevSecOpp- Security design / review consultant will ensure that newly created, public facing apps are secure by design and by default by aligning them to current / best practice security policies and standards into the design phases. The individual must have a technical software / application development background with specalist experinece in secure architecture design. (Frameworks, processes, best practice etc) Practical experience translating and ensuring that the OWASP top 10, ISO27001, HMG frameworks requirements are reviewed and embedded into project designs which are implemented is essential. Experience working projects through a full development lifecycle is key. You will work along side the design and project teams to idenitfy and mitigate risks throughout the design phases. This is a permanent role. SC clearance is essential as is the ability to get to the London office. (When appropiate #covid) Security DevSecOps consultant. To arrange a discreet call book via https://calendly.com/chris-holt/devsecopp--security-design-review-consultant
- SPLUNK SOC Analyst level 3, London.
SPLUNK SOC Analyst level 3, Must be able to commute to the City of London. Onsite role. Security clearance needed. The SPLUNK SOC Analyst level 3 must have current experience working within a SOC environment with specific experience using a range of tools and techniques to investigate security incidents. Current experience with Splunk is essential. any additional experience Individuals with Elastic Security SIEM are highly desirable. Any of the following certifications are desirable Splunk Phantom certified admin, Splunk Core Certified Power User / Advanced, Splunk Certified Enterprise Security Admin, etc The role will include, but not be limited to working with sophisticated information security tools, investigating security incidents, incident management, technical escalation, process improvement, research into the latest threats, reporting etc The individual MUST currently be living in the UK and be able to achieve UK security clearance. (SC) This is a permanent role To arrange a call with Chris Holt https://calendly.com/chris-holt/arranged-call-with-chris-holt-elastic-siem-engineer-soc Chris.Holt@dclsearch.com
- ISO 27001 & Business Continuity Security Specialist, End User
- United Kingdom
CH7828 ISO 27001 & Business Continuity Security Specialist, End User, £70,000 United Kingdom ISO 27001 & Business Continuity Security Specialist needed to join a Cyber team within an end user. The ISO 27001 & Business Continuity Security Specialist will have end to end responsibility for the information security and Business Continuity management system. ISMS/BCMS. Both from an information security and technical security perspective working alongside the CISO. Experience must include, but not be limited to; a mix of Information Security standards, frameworks, audit principles, controls / policies and the management and use of the technical tooling to achieve compliance. ISO 22301, ISO 27001, NIST Cybersecurity Framework etc An ideal candidate will be working within an end user environment with a cyber consultancy background. Experience taking a company through accreditation is highly desirable Experience managing internal stakeholders, technical teams and external third parties essential Flexible working, very occasional travel to London office This is an exclusive role to DCL Search & Selection. Looking to interview immediately. https://calendly.com/chris-holt/iso-27001-business-continuity-security-specialis
- PCI- DSS Security Consultant, End User
PCI- DSS Security Consultant needed to join a Cyber team within an end user. The PCI- DSS Security Consultant will have end to end responsibility for PCI - DSS and its continuing certification. Both from an information security and technical security perspective working alongside the CISO. Experience must include, but not be limited to; a mix of Information Security standards, frameworks, audit principles, controls / policies and the management and use of the technical tooling to achieve compliance. PCI objectives / 12 key requirements, OWASP top 10, ISO 27001, NIST Cybersecurity Framework etc An ideal candidate will be working within an end user environment with a cyber consultancy background. PCI Cloud compliance, specifically someone with experience taking PCI-DSS from on premise into the cloud is HIGHLY desired. However, someone with Solid PCI experience with a strong technical background which include Cyber / Secure by design etc would be considered. Experience managing internal stakeholders and external third parties essential. Flexible working, but with the ability to get into London. This is an exclusive role to DCL Search & Selection. 1st stage interviews to happen the week of the 14th September Arrange a call with Chris on https://calendly.com/chris-holt/arrange-a-call-chris-dcl-pci-compliance