central south mid market
Just Develop iT
Developing a passion Technology, product, property, finance and … a fleet of jets.
You couldn’t get a much more diversely spread business than Just Develop iT.
“We’re pitched to two or three times weekly. There are always opportunities to diversify,” said Dan Richards, chief operating officer of the Segensworth-based global investment and finance firm.
“We own 95% of one of Europe’s fastest growing private jet operators. We acquired Xclusive Jets in 2016, keeping the entire team ‘on-board’. We’ve more than tripled the headcount, acquired five new jets – with two more coming to the fleet in Q4 2018 - and increased turnover by over 600%.
“Chris Phillips, our CEO, was excited by the opportunity. He’d already started flying privately and thought he could operate the business in a more efficient way. We researched, carried out due- diligence and a couple of months later the business was ours.”
It’s not just the UK that attracts investment from Just Develop iT.
“We own 20% of the number one vaporiser pen in the US – Kandypens. Over two years the business has sky-rocketed. It’s featured in a Justin Bieber and DJ Khaled music video, and has a huge celebrity following.
“And we’ve a great investment in San Diego. Workwell, an all-in- one solution for employee and payroll management, is one of the most consistent performers in our portfolio.”
Closer to home, varied investments keep the team at JDi excited – Portsmouth’s Astoria nightclub, clothing line Feather, a thick
can run the team ragged, as chief finance officer Tom Barrett explained: “You have to educate yourself; learn the history. You get your head around a tech business, then the next idea is in and you have to go and learn about jets. It can be exhausting.”
Dan Richards, Chris Phillips and Arbinder Chatwal
property portfolio, a development finance business and a music festival showcasing A-list stars from across the globe.
JDi likes to give back to local businesses too.
“Recently, we ran a Dragon’s Den style competition. The prize was £25k equity-free funding, mentoring, HR support and website design. The winner, Southsea Bathing Hut, a local cosmetics company, is run by a wonderfully talented woman who has sound business acumen. She used her winnings to open her first storefront on Albert Road.”
JDi is not just about the money. The 80-strong staff at Segensworth HQ put in much more. Advice and strategy is key.
The downside is that its very diversity
Richards added: “You have to understand the operating nuances of all these businesses. It’s incredibly fun but a challenge finding the time to get all the business leaders what they need.”
Also key is when to get in ... and out.
“We’ve built and scaled numerous businesses now. Our forecasting is incredibly accurate – we predict when a business will break even almost to the day,” said Barrett.
Richards continued: “We aim to exit our technology investments every two years. Our latest is an antivirus product business with eight million users on the platform. It starts generating positive EBITDA in two months’ time. Then our need to cashflow the business falls away. Typically at this stage we exit the business.
“Sometimes it’s sad when something that you’ve worked phenomenally hard on is sold off – it’s bittersweet. But you enjoy the returns … and there’s always the next project ...”
Diversification - BDO’s advice in brief • Research first and run due diligence.
• Be realistic about any impact on your existing profitable business.
• If it stacks up, be bold. Make your move soon.
For the top 30 performing mid-market companies in the Central South for 2018 visit the website or contact Cheryl Martin:
bdo.co.uk/en-gb/the-central-south-mid-market cheryl.martin@
bdo.co.uk
THE BUSINESS MAGAZINE – SEPTEMBER/OCTOBER 2018
businessmag.co.uk 17
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