Manchester-headquartered Eque2, the construction, contracting and housebuilding software specialist, is celebrating a year of strong growth following a multi-million-pound capital injection by mid-market private equity firm LDC.
Since the investment in November 2017 it has recorded double digit revenue growth. For the financial year ending April 2018 the business reported revenues of £12.9m, up 13% year-on-year, and is now on track to hit revenues of more than £15m for the current financial year, with its order book up 40% over the same period.
Over the past 12 months, alongside adding over 200 new customers for existing products, it has also acquired Miracle Dynamics Payroll and HR Solution and JNC Construction Software, securing its position as the UK’s leading provider of construction accounting and job costing software solutions.
Miracle Dynamics is a leading supplier of HR management technology to the Microsoft Dynamics business applications market, while JNC provides accounting and job costing software solutions to more than 400 business across the UK.
Eque2 has launched its SaaS offer and is expanding the range of solutions it offers to customers, with a number of additional product launches in the pipeline over the next 12 months. It will also continue to target further complementary acquisitions to support its strong organic growth.
Its 135-strong team now supplies business management software to more than 1,950 customers in the construction, housebuilding and contracting industries.
Richard Beaton, executive chairman at Eque2, said: “This has been a fantastic year for Eque2 as we set the wheels in motion on our ambitious buy-and-build strategy. In the coming months we will be maintaining this momentum by targeting further acquisitions which complement our existing portfolio and strengthen our position as the dominant provider of software solutions to the sector.
“The strategic support and guidance of the team at LDC has been invaluable to us over the past year. We are now actively growing our team to continue delivering the best services to our customers, and we look forward to capitalising on new opportunities to continue boosting our growth.”
John Clarke, investment director at LDC, added: “Our investment in Eque2 recognised the strength and ambition of Richard and his management team to grow the business into a true market leader. The success of the past 12 months underscores their hard work and commitment, and is a prime example of how an effective partnership can drive impressive results.”
LDC first backed Eque2 in November 2017 to accelerate its ambitious growth strategy and buy-and-build programme. The deal was led by investment director John Clarke and head of LDC in the North West Jonathan Bell, and both joined the board as non-executive directors.
The North West team at LDC has invested more than £725m since its inception in 2000, and its investment portfolio remains one of the largest, most diverse and dynamic groups of private equity-backed businesses in the region. Recent deals include the £25m investment in Bolton-based price comparison specialist Love Energy Savings, and the sale of iconic crisp brand Seabrook to snack company Calbee.
As the private equity arm of Lloyds Banking Group, LDC has committed to investing £1.2bn to support the growth ambitions of SMEs nationwide over the next three years and the North West remains a strategic region in this pledge.