Project Cerulean is an Azure specialist providing cloud and managed services, along with ERP solutions and expertise in the distribution sector.

The company is a Microsoft Gold Cloud Solution Provider. It is also the sole ERP application partner in the UK and Ireland for a leading software application within the merchant vertical sector.

The business provides its services to clients primarily across the UK and Ireland construction supplies sector. In recent months, the business has made initial expansion into USA, with several clients onboarded.

Our clients are now offering the company for sale to facilitate ongoing development under the impetus of new ownership. Offers invited.

Key Highlights

– Has maintained long-standing relationships with many clients.

– Very low client attrition rate, safeguarding revenue on a long-term basis.

– Benefits from a wealth of in-house expertise, with a candidate available to fulfil some of the Directors’ responsibilities, post-sale.

– Both Directors are willing to provide a suitable handover period; other active shareholders are interested in staying in operational roles, subject to the buyer’s preference.

– Primed to take advantage of development within the services and consultancy for other global ERP software markets.

– Significant scope for growth through Azure Cloud and Managed Services, the implementation of other applications, recruitment, and expansion of its sector and geographical remit.

– An ideal acquisition for similar or synergistic organisations.

Financial Highlights

– A fast-growing company – YE22 turnover of £2.7m and adjusted EBITDA of £962K – with a unique value differential and vertical market sector.

– YE23 outturn figures indicate a turnover of £3.5m and adjusted EBITDA of £1.3m.

– Turnover is projected to increase to £4.2m by YE24, rising to £5m in YE25.

– Average gross profit margin of 56% between YE19 and YE22.

– Shareholder funds demonstrating year-on-year growth, having increased by 462% from YE19 to YE22.

– Clients are retained on contractual agreements, some of which span up to 36 months, safeguarding the business’s revenue.

– 95% of active clients provide repeat business on an ongoing basis, with c.80% of the company’s revenue based on recurring income or subscriptions.

– Approximately £2.75m of recurring revenue, with this increasing.

– As of July 2023, the business is reporting a further ‘shortlisted’ £2.1m of recurring revenue over several 36-month period contracts.