Babble has renewed its ambition to double its gross profit for the third year in a row following its fourth acquisition in 2020.
The cloud communications provider announced the acquisition of Shape Networks earlier this week with Matt Parker, Managing Director of Babble, confirming that the target of reaching Â£ 10million EBITDA in 2020 has been exceeded.
Talk to UC todayParker said Babble will aim to double its earnings before interest, taxes, depreciation and amortization for the third year in a row with the long-term goal of being able to grow into a billion pound company.
“We set ourselves a target in 2019 to become a Â£ 5million EBITDA business and in 2020 we asked how we get to Â£ 10million,” Parker said.
âWe have this two-pronged approach to growth, number one focuses on how we drive the organic growth of our business and number two then asks how to acquire companies we love and put the sales engine that we we have behind these companies to grow them faster after the acquisition than before the acquisition.
â2021 is about doubling the size of the company again. The goal I have set is that when we leave for the Christmas holidays around this time next year, I want this business to be twice as big today in terms of turnover and profitability. . This objective will be achieved through multiple acquisitions and continued organic growth.
In terms of long term goals for the business, I think there will be a small number of cloud resellers that will really make their mark in terms of growth. I don’t think anyone will argue that in this particular industry the consolidation is constant. From my perspective I think it is likely that we will see continued consolidation to the point where there will be a Â£ 1bn communications reseller in the UK.
I don’t think that will happen next week, but I think someone who looks a bit like us will end up with that kind of assessment, and I would like to think that we are at least as well placed as anyone. who else to get there in five years.
The long journey
Parker went on to say that Babble was at an advanced stage of two more acquisitions that could be announced this side of Christmas before describing 2020 as a “pivotal year” for the communications industry.
âThere are two deals that, if all the cards are right, I would expect them to be done before I go on vacation with my family.
I’m not sure anyone in UC will view 2020 as anything other than a pivotal year in the evolution of people in organizations. Organizations may decide they want their staff to use certain technologies, but it’s the employees who actually adopt it and start using it in their day-to-day work.
While COVID has been a terrible thing, until 2020 some industries will see a positive result. For me this is because of how we have accelerated behavior change and the use of these kind of platforms and there is a lot to be said about being in the right place at the right time. 2020 looks a bit like that for our industry.