OB10 finally achieves traction with report of £7.1 million revenues

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This article is available as a blog post at http://eippworld.com/?p=617

Best regards
Manoj

I have been pointed out by Chris that John Jermy and Chris Lowrie are still part of OB10 but not Directors of the company.

Best regards
Manoj

Dear Manoj,

At OB10 we appreciate your ongoing enthusiasm for the company and recognise that you are basically a fan, not a critic.

In your most recent blog entry you have gone out of your way to recognise the poineering role that OB10 has played and you rightly point out the dangers of being acquired by a large multinational and subsequently disappearing inside it.

Over recent years you have written several times about OB10, and whilst a lot of it has been speculative and wide of the mark, we didn't consider responding as we have never wanted to get drawn into unnecessary public debate. Our focus is on growing OB10 for the benefit of our customers and shareholders.

However on this occasion I need to respond, to correct a number of seriously misleading and dangerous comments that you have made, which will be read by prospects in what is an increasingly buoyant market.

We have talked before about the need to blog responsibly. While everyone is entitled to their opinions, I would much rather that prospects, VC's and journalists read reports from knowledgeable analysts such as Forrester and Gartner, or read the detailed Directors Report on Activities provided in the accounts which we recently filed at Companies House, about whose results you have written in your blog. I would direct anyone who reads this piece to those sources.

Forrester has recently written two excellent reports on the EIPP space, the second "Wave" report giving their rating of a number of major vendors, including the views of their customers, so your contention that
"Forrester and Aberdeen Group's reports are great but they do not ever try to scrutinise vendors" is way wide of the mark!

To some of the specific points then: while we were pleased with last year's growth, we are only at the beginning of the journey, and our revenue run rate (never mind our new billings) is already way ahead of that published at Companies House for the year to April 30th 2008..

You incorrectly referenced the departure of two key founders which you have since retracted, but the more important point to make is that OB10 has very successfully grown its business globally from its small origins with all of its founders and other key early contributors still fully committed and integral to the company's future. This is a testimony to Stefan, Chris and John, but also to all of the more recent key senior players who have been able to develop strong working bonds across geographies and functional disciplines.

You worry about our expense growth and lack of profitability, but our expense growth has been investment in increasing our geographic footprint, in developing our third stage technology platforms, in expanding our service portfolio and developing our worldwide talent pool. As to profitability, while our reported results show losses, our ongoing business is already substantially profitable (as in seven figures before the decimal point), with most of our resources being devoted to winning new business, onboarding suppliers and servicing our customers.

We have never yet lost a contract because of financial viability, even despite the quality and size of our typical customers.

With regard to the patience of our investors, this is simply not an issue. On the contrary, they are delighted with progress and have continued to support us as and when needed. The picture you paint of me running around the City with a begging bowl rather than running the business is hilarious! Every funding round over the past three years has been oversubscribed by our internal investors - we are already well funded through breakeven, and myself plus the rest of the management team can get on with the job in hand.

I appreciate that those who write about these things love to speculate about ownership changes,what we might or might not do and whether we have enough funding, but the truth of it is that our strategy is clearly defined, our growth rate in line with our plans and our shareholders fully supportive with others warmed up and ready if necessary, should we choose to expand further and faster.

So I hope these comments are helpful to you and your readership. I think it would be very difficult for anyone to glean much about OB10's performance by simply applying traditional financial ratio analysis on summary published accounts, which is why the Directors chose to include a weighty commentary this time around, but you clearly have every right to attempt to do so!

With good wishes.

Jamie Gunn, CEO OB10

Hi Jamie


Many thanks for your response. I published it with few of my thoughts on engagement here


Best regards

Manoj



Quick update on financials (30/04/2011):


Turnover: £15.562 million

Loss: £2.7million

No of staff: 190


And now owned by private equity house, FF&P Private Equity Ltd.


Nice to see Stefan surviving all the changes happened since the company was founded in 2000


Best regards

Manoj



impressive statistics

2012 Financials:


Revenues: £16.2 million (up from £15.6 m)

Staff: 200 (up from 180)

Highest paid director: £250,000 (up from £187k)

Stefan John Foryszewski continues to remain a director, the only co-founder left in the business.

I lost touch of number of financial rounds they raised




Added by manojranaweera, 5 years ago

Updated: 2 years ago
Location: Manchester
Full analysis report on OB10 can be purchased at a cost of £250.00 (pdf), please contact the author.

       

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