Newcastle’s Opencast has reported nearing £50m in revenue for 2023.
- Despite a 38% revenue increase, the company faced a dip in operating profits.
- The firm’s workforce expanded significantly, growing from 258 to 431 employees.
- Opencast continues to strengthen ties with government sectors amidst economic challenges.
- Plans are underway to explore new opportunities, including a move into the healthcare sector.
Newcastle-based technology firm Opencast has reported significant growth in its 2023 financial accounts, achieving a turnover of £49.9 million, marking a 38% increase from the previous year. Despite this notable rise in revenue, the company experienced a slight decline in operating profit, which totalled £3.3 million, as it heavily invested in expanding its workforce. The headcount surged substantially from 258 to 431, emphasising Opencast’s commitment to bolstering its team.
Opencast has achieved substantial success in delivering digital transformation services to various government departments, further underscored by a recent £32 million contract with the Department for Work and Pensions. Aiming to deepen its engagements, the firm plans to foster stronger relationships with government departments and explore avenues in the public sector. Moreover, Opencast is contemplating an entry into the healthcare industry, indicating its openness to new ventures.
In discussing the year’s performance, Executive Chair Charlie Hoult described 2023 as a “year of consolidation,” amid increased volatility in both operational and macroeconomic environments. He noted that the broader UK technology sector experienced a slowdown, intensifying competition for government contracts and exerting pressure on departmental budgets. A significant challenge arose when a large project concluded unexpectedly due to client budget constraints, leading to underutilisation in other areas as the firm prioritised retaining its workforce.
The company’s strategic growth was further highlighted by an increase in personnel to 464 by year-end, a 15% rise reflecting a robust investment in talent, particularly in consulting and core function areas. Opencast’s approach, focused on its employees, resonated well during economically challenging times. Although plans to invest in physical hub locations were paused, the company expanded its virtual presence in Manchester and Birmingham, maintaining physical offices in Newcastle, London, Edinburgh, and Glasgow.
Opencast co-founder, Mike O’Brien, stepped down earlier in the year, leaving Tom Lawson as CEO to report on another year of growth, even amidst sectoral and economic challenges. Lawson emphasised the importance of business growth in delivering large-scale, impactful services across various sectors, including government and healthcare. He reaffirmed Opencast’s commitment to societal betterment through simpler, fairer solutions, rooted in a purpose-driven and people-centric business model.
Opencast’s 2023 financial performance highlights its adaptability and strategic focus amidst challenging economic conditions.
