Adsure Services has announced a promising update on business activities, highlighting the business assurance and internal audit provider’s expansion into the private sector.
Although the company will remain focused on the public sector, the move into the private sector represents a significant opportunity for growth and delivers on its strategy to enter new markets with existing services.
Adsure Services traditionally provided business assurance services across four core public industry groups: housing, health, local government, and education.
Today’s announcement is particularly eye-catching because it demonstrates the versatility of Adsure’s services through a series of contract wins with a private sector rail joint venture.
The company didn’t share the size of the contracts, but it did note that no single client or contract accounted for more than 5% of its overall revenue.
Adsure generated £5.06m revenue in the half year to 30th September, an increase of 19% on the same period a year prior.
In addition to announcing its entry into the private sector, Adsure outlined the favourable trading conditions for its core public sector business.
“I’m delighted that Adsure’s principal trading subsidiary, TIAA continues to offer an attractive alternative to mid-tier accountancy practices to the UK public sector,” said Kevin Limn, CEO of Adsure Services.
“Public services are in a state of flux with significant reconfiguration of local government planned, the announcement of the abolition of NHS England and the Further Education sector facing significant financial challenges. Unlike generalist accountancy firms, which often blend audit, tax, and advisory services, TIAA is exclusively focused on business assurance, reducing conflicts of interest and providing our clients with a specialist service delivered by our deeply experienced team.”
Due to the ‘favourable trading environment underpinned by the ongoing reconfiguration of UK public services’, Adsure said it sees continued growth in demand for outsourced business assurance and internal audit services from government-funded organisations. This dynamic will provide a significant tailwind for the business over the coming years.
Adsure also provided insight into the efficiency of their own business, highlighting an 83% increase in the number of staff at their operating subsidiary, which helped them meet their utilisation target.
The improvement enabled Adsure to increase service delivery without incurring additional costs. The impact of this should be reflected in the company’s next set of results in the form of higher margins.