ADD on acquisition trail to continue fast paced growth

A GLOBAL IT business is on the lookout for new acquisitions.

Advanced Digital Dynamics (ADD) is a Harrogate-based IT distributor, specialising in computer hardware and data destruction. Over the past five years, it has continued to evolve and now, operations director Julie Pickersgill is eyeing up new opportunities to further its success.

“As well as our own organic growth, we are now looking for acquisitions and investment,” she said.

“We want to be able to continue with our growth and we know we won’t be able to do that just organically, we will have to expand into different areas.

“However, instead of simply finding businesses to buy, we want to give something back to the community. “

ADD is running an investment competition with QU2 – Leeds Metropolitan University’s business accelerator. The Dragon’s Den style business investment competition will see ADD offer a £5,000 investment coupled with expert business mentoring to three businesses.

Pickersgill said: “This is really exciting for us and gives us the chance to give something back.

“It will still be the entrepreneur’s business and ADD will only take a small stake. We want to be able to get involved in other businesses and help somebody grow like we have been able to do. The businesses don’t have to focus on IT either.

“This is a fantastic opportunity for us to bring in new investment into the company.”

By January 31 2014, the company is poised to post a turnover of £5.2m – an increase of 30% on this year’s £4m turnover – and with “unprecedented” profitability.

ADD is currently in talks with another business about a joint venture and as well as these acquisition plans, the North Yorkshire company, which has a sales office in Cheshire, is planning to open up another sales office in the North East.

“There is no scope to not succeed,” Pickersgill said.

“Creating another sales office is a massive opportunity for us. We may also look at opening another warehouse further north.”

ADD, which recently won a contract with a US firm to distribute machinery, is gearing up to move into its new 14,000 sq ft warehouse in Harrogate – providing a bigger and more modern space for the business.

Pickersgill said: “We have got very healthy profit margins and are continuing to grow. We are proud and confident of the business – we think we have done really well.

“The move will be a fantastic opportunity to bring in more clients. We think there are quite a few avenues that will present themselves with our move.”

Pickersgill joined ADD in 2006, when it was a small firm in Goole with three people and a £300,000 turnover. In just over six years – and against a challenging financial backdrop – she has grown it to a £3.4m turnover business employing 20 people.

Merging an IT business under the ADD umbrella in 2010 and launching the onsite data destruction division of ADD in June 2012, Pickersgill said the firm is constantly evolving to ensure it keeps up with the fast-paced IT sector.

“We had a really bad time in 2008 when the recession came to a head. We had to change what we did and the way we worked,” she said.

“The firm used to sell servers and equipment but changed its strategy and started to sell parts, rather than full items. Since we changed our strategy we have come in leaps and bounds.

“Now, we are constantly evolving and changing. We have got a lot of flexibility to change and work how we want to. We are always looking for something else.

“It is a really exciting time for the business.”