ABERDEEN IT BUSINESS INCREASES TURNOVER BY 21%
Innovative IT business Dynamic Edge has increased year-on-year turnover by 21% and targeted further growth by raising capital through Funding Circle.
A leading specialist in cloud computing technology, Dynamic Edge raised £100,000 through the crowdfunding initiative – which enables online peer-to-peer lending as an alternative to traditional sources of funding for small businesses.
In February, Funding Circle received a £40m injection from the state-backed British Business Bank in order to provide loans to small and medium-sized businesses across the country. This followed a similar investment of £20m in March 2013 which Funding Circle has since lent to more than 2,000 UK businesses, helping to create an estimated 6,500 jobs.
Rob Hamilton, chief executive of Aberdeen-based Dynamic Edge, was able to attract 350 private investors for his business proposal through Funding Circle.
He said: “We made the decision to use Funding Circle as not only did it provide the business with a no equity loan with fixed monthly repayment fees, but the entire process was extremely straightforward; it took just three weeks from completing the initial application to receiving all of our funding.
“Although we had heard positive feedback from other companies who had used the initiative, it was still something of a step into the unknown. We are delighted to have been backed by 350 investors who have all recognised the growth potential of our business.”
Dynamic Edge recorded turnover of £750,000 for its March 2014 year-end – a rise of 21% on the £618,000 recorded for its previous year-end. It expects turnover to rise further to £1m by 2015.
The business now plans to open an office in London by the end of the year, while it is also exploring a potential acquisition in the Central Belt.
Additionally, the company, which currently employs 14 people, is looking to increase its team to 20 by the end of this year.
Rob Hamilton added: “It’s been an exciting time for the business, particularly given our encouraging growth figures. Our team’s reputation for excellent customer service has been an important factor, as demonstrated by the number of clients that have stayed with us since the beginning.
“We are actively looking to add skilled people to the team, while the added capital raised through Funding Circle will allow us to invest in the business over the coming months – including plans to expand into other areas of the country.
“We are currently in advanced discussions with a number of businesses in London and are hopeful of finding a solution in the near future. Additionally, we are continuing to explore opportunities in other parts of Scotland should the right deal become available.”
Established in January 2009 by chief executive Rob Hamilton, Dynamic Edge offers a comprehensive range of IT and communications services to the north-east business community.
Rob is also a board member of Aberdeen-based charity Inspire, which helps people with learning disabilities and additional support needs.
In early 2010, Dynamic Edge was identified by Microsoft as its first partner in the UK to strategically lead with cloud computing, which is now an established mainstream technology.
Cloud technology reduces or eliminates the need for server hardware, with all applications and business systems available in the cloud – and accessible from around the world. This can help businesses significantly reduce costs and increase productivity, while it also allows them to tap into a wider pool of resources.
Dynamic Edge has a portfolio comprising more than 100 clients and works closely with companies in the oil and gas industry as well as business services, commercial and legal firms. The company also specialises in assisting charities and third sector organisations manage their IT and communications requirements.
Additionally, the business provides managed IT services, hosted voice solutions, proactive support, security and disaster recovery. The company has its own state-of-the-art data centre premises which provides essential backup storage for clients.