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Technology sector grows despite downturn


The region’s technology companies are growing – at least in terms of turnover. The latest Southern Tech 100 list, launched by The Business Magazine this month, shows a combined sales figure for the top private independent technology companies of £5.2 billion, up from £4.6b a year ago


Sponsored by Barclays Corporate, law firm Pitmans, and business advisers James Cowper, the Tech 100 is now in its second year – and gives a fascinating insight into the region’s technology base.


The 100 listing is ranked by turnover. The key criteria for inclusion are:


• The company is independent and private


• It is headquartered with its main trading address in the region


• Public companies listed on the London Stock Exchange (including AIM) are excluded


• Multinationals are excluded


• Subsidiaries of foreign companies and UK holding companies are excluded, as are those that only have their registered addresses in the area. However some businesses have complex family trees, so the ultimate parent is not immediately apparent.


Top of the tree for the second year running is Westcoast, the Theale-based IT products supplier. With sales of nearly £950 million to the computer reseller network, Westcoast, founded in 1984, has grown substantially under its own name and that of Kelido, incorporated in 1997. It now employs 740 people and has offices in Reading, Dublin and Nottingham, plus a warehouse in Milton Keynes.


Second in the list is Winchester-based Arqiva, which operates at the heart of the fast-growing broadcast, satellite and mobile communications markets. With revenues of £826m, Arqiva employs 2,000 people and its major customers include BBC, Sky, Vodafone and the emergency services.


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – FEBRUARY 2012


Another top 10 company that we feature in the pages ahead is Sophos, the Abingdon- based IT security specialist, which has recorded a significant rise in revenues, due in part to its acquisition of Astaro.


Like many IT companies that like to cluster in the south, Sophos sees the region as “the perfect pool for new talent“ – attracting the “best and brightest“ employees.


This year looks set to be a key one for technology companies. At least one forecaster has defined 2012 as being the Year of Digital, a coming of age for the global digital economy. With many industries undergoing a digital transformation, and with IT budgets being restored, and increased, at a number of major organisations, the outlook for the technology sector seems bright.


On the deals side, merger and acquisition (M&A) activity in the technology sector has picked up. Some larger technology companies have significant cash reserves which they are looking to deploy through M&A, in order that they can expand their geographic reach and provide increased access to high-growth markets.


And investors, polled about which sector they reckoned would do best in 2012 in the markets, overwhelmingly chose information technology.


• Next month, The Business Magazine and the Southern Tech 100 sponsors, Pitmans, James Cowper and Barclays, will host a dinner in Reading for private technology companies. Full report in our April issue.


www.businessmag.co.uk


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