Opencast reports £50 million revenue in a year of consolidation

Opencast, one of the North East’s fastest-growing tech firms with an office in Newcastle and virtual hubs in Manchester and Leeds, has reported revenues approaching £50m during what it described as a “year of consolidation”.

The company’s accounts for 2023 show turnover rising 38% from £36.3m to £49.9m. However, operating profit dipped slightly after the company invested heavily in expanding its workforce, growing its headcount from 258 to 431.

Opencast has achieved significant success in providing digital transformation services to Government departments, including securing a £32m contract with the Department for Work and Pensions. The company plans to strengthen its partnerships with Government departments and the wider public sector while exploring new opportunities in the healthcare sector.

In the 2023 accounts, executive chair Charlie Hoult explained: “2023 was a year of consolidation for Opencast, as revenue grew to £49.9m, an increase of 38%, and pre-tax profits fell 22% to £3.2m against a backdrop of increased volatility in the operating and macroeconomic environments.”

Hoult noted that the UK tech sector slowed down overall, leading to heightened competition for government contracts and downward pressure on departmental budgets. He highlighted a particular challenge when a large team working with a public sector client was rolled off unexpectedly due to budget constraints. To protect jobs, Opencast chose to absorb the impact, leading to lower utilisation across the year.

Despite these challenges, Opencast’s workforce continued to grow, reaching 464 employees by the year’s end, a 15% increase.

Hoult concluded: “Our people-focused approach has continued to resonate, especially given the strong strategic position we took to prioritise our people through a more challenging economic period.”

Image source: https://opencastsoftware.com/team-members/charlie-hoult/