ByBox locks into top growth slot

By Maija Palmer, FT.com site
Published: Oct 19, 2007

ByBox, a company that operates a network of secure electronic mailboxes that alert customers when their packages have been delivered, has been named the UK's fastest growing technology company as measured by revenue growth by Deloitte, the accountant.

The seven-year-old company topped Deloitte's list of the 50 fastest growing technology businesses. Its revenues grew from £119,235 in 2002 to £18.3m in 2006.

ByBox has about 1,200 secure lockers around the UK and works mainly to deliver items for big companies such as Siemens, Coca-Cola, Fujitsu and the RAC - usually urgently needed spare parts.

Automated alerts can be sent to customers via e-mail and text when a delivery has been made. The company is expanding its network into France and is considering offering its services to the general consumer market.

Other companies heading the list included Rocela, which helps companies manage software licences; Virtual IT, which provides IT support for smaller businesses; Think, an internet marketing company; and Miniclip, an online games portal.

Simon Kerton-Johnson, a partner in Deloitte's technology, media and telecommunications practice, said this year's list was notable for the broad range of technology businesses included.

"Last year the winner was a telecoms company that aggregated content for mobile phones, and in the past three or four years the market has been driven by this sector.

"This year companies are succeeding in all categories, from ID theft to security and search optimisation," he said.

"It shows the healthy state of the technology market," he added.

"The companies in the list tend to be the leading edge of what is to come. They tend to make it into the Fast 50 when the idea they have been working on starts to catch the mass market mood," Mr Kerton-Johnson said.

Software was the biggest sector represented, with 10 software businesses making the list. Telecoms was the next largest sector, with five companies.

However, more than half of the companies were classified as "other" with business models ranging from ByBox's secure mailboxes to video games.

Many of the companies in the Fast 50 are expected to be acquired by larger businesses.

"Realistically, a number of them are quite explicitly looking for an exit route," Mr Kerton-Johnson said.

However, 14 of those in last year's list have made the 2007 rankings again, showing that many have staying power as independent businesses. Last year's winner, MX Telecom, for example, is ranked 20th in this year's list.

Four of the Fast 50 in profile

Rocela
Edinburgh-based Rocela was founded five years ago by four former executives of Oracle - of which its name is an anagram. It advises companies how to manage Oracle software. About 60 per cent of FTSE companies use Oracle products but its pricing and licensing can be complex. Rocela offers companies (including BP, O2 and Littlewoods) tips on how to manage their licences and save money. The company had turnover of more than £20.6m for the end of the 2005-06 financial year. www.rocela.com

Virtual IT
London-based Virtual IT was founded in 2001 to offer services to small and medium-sized businesses that could not afford their own IT departments. The company provides everything from hardware and firewalls to support services, and supports more than 3,000 desktops. David Somen, managing director, says his competitors get about two calls from their customers each month for computer problems. For Virtual it is 0.8. www.virtualit.biz

Think
Newcastle-based Think was founded five years ago by Tarek Nseir, who was just 20 years old. The company has gone on to become the fastest-growing internet marketing company in the North East. It helps clients such as Northumbrian Water, the Foreign and Commonwealth Office, the NHS and ITV build and manage their brands across digital media. Its turnover is set to double from £1.7m last year to more than £3m in 2007. It employs 60 people and recently opened offices in London. www.think.eu

Miniclip
Founded in 2001, Miniclip claims to be the world's largest games portal. It has 35m unique visitors a month who play mainly short puzzle and arcade-style online games. The bulk of revenues is from online advertising, interest in which is growing. But it is diversifying into subscriptions for more complex games. "Although ad rates are at an all time high, they do fluctuate, so diversification is key," said Robert Small, chief executive. www.miniclip.com