Opencast, a prominent Newcastle-based tech firm, has witnessed a remarkable increase in its revenues, nearing the £50 million mark for 2023. Despite challenges, the company has experienced a year of consolidation.
The firm, situated at Hoult’s Yard, published financial results showing a 38% rise in turnover from £36.3m to £49.9m. However, operating profit saw a slight decline due to investments in staff and resources.
Significant Revenue Growth
One of the North East’s fastest-growing tech firms, Opencast, reported a substantial increase in revenues, closing in on £50 million in 2023. This 38% rise in turnover marks a period described by the company as a ‘year of consolidation.’
Although turnover surged, operating profit slightly decreased to £3.3 million due to considerable investments in staff, expanding their workforce from 258 to 431 employees.
Successful Government Contracts
Opencast has achieved notable success by providing digital transformation services for various Government departments. Recently, the firm secured a significant £32 million contract with the Department for Work and Pensions (DWP).
The company aims to strengthen relationships with Government bodies and the public sector while exploring opportunities in the healthcare sector. Opencast remains open to new ventures.
People-Centred Approach
The firm’s workforce has grown to 464 by the end of the year, a 15% increase, showcasing its commitment to investing in talent across consulting and core function capabilities.
Executive chair Charlie Hoult comments, “2023 was a year of consolidation for Opencast, as revenue grew to £49.9m, an increase of 38%, and pre-tax profits fell 22% to £3.2m against a backdrop of increased volatility in the operating and macroeconomic environments.”
Hoult highlighted the impact of market conditions, including increased competition for government contracts and budgetary pressures, which necessitated strategic decisions to protect jobs and maintain workforce utilisation.
Strategic Investment in Hubs
While Opencast paused further investments in physical hub locations, it continued to develop its virtual hubs in Manchester and Birmingham. Leeds also transitioned to a virtual hub model.
The firm maintained its physical sites in Newcastle, London, Edinburgh, and Glasgow, reflecting a balanced approach to physical and virtual presence.
Leadership Changes and Vision
Co-founder Mike O’Brien stepped down from the business earlier this year, leaving Tom Lawson as the chief executive. Under his leadership, Opencast reported continued growth despite sector-wide challenges.
Tom Lawson stated, “Our business growth helps us to deliver at scale the important services, and ultimately impact, that our clients need, including in government, healthcare, utilities and renewable energy.”
Commitment to Social Impact
Opencast is dedicated to building a resolutely independent business model that prioritises people and contributes positively to the tech community and society.“We have built and continue to grow a resolutely independent business that cares about its people and that contributes to the tech community and wider society,” Lawson remarked.
The company’s purpose-driven approach ensures a positive social impact alongside its financial growth and profitability. Lawson added, “Our people-focused, purpose-driven business model delivers positive social impact at the same time as growth and profitability.”
Challenges and Resilience
The UK technology sector faced a slowdown, resulting in increased competition for government contracts and pressurised departmental spending.
Despite these challenges, Opencast’s strategic decisions and commitment to its workforce have enabled it to navigate these turbulent times effectively.
Opencast’s 38% increase in revenues, nearing £50 million, highlights its resilience and strategic prowess in a challenging economic environment. The firm’s commitment to its workforce and client impact has been pivotal.
As Opencast continues to expand its government and public sector engagements, its emphasis on sustainable and fair solutions promises a positive impact on society. The company’s balanced approach between growth and social responsibility remains a cornerstone of its success.
