Spirit Telecom plans to triple revenue in 2020

Spirit Telecom's FY 19/20 H1 results have revealed the company is considering acquisitions that could triple revenue and vastly grow EBITDA .

In a results announcement released today (PDF), the company revealed revenue grew 51 percent compared to the same six-month period in FY19 to reach $12.3 million. Of that, recurring sales accounted for $10.6 million. Underlying EBITDA rose from $360K last year to $1.61 million. However, Net losses widened from $562K to $740K, which the company pinned on termination payments and business restructuring costs of $378K.

But the results presentation also reveals that the company has set itself a revenue target of $80m by December 2020, and that it has identified acquisition targets and commenced negotiations or due diligence on targets that would bring with them around $65m a year of recurring revenue and $10m of EBITDA.

If those deals take place this calendar year, Spirit would grow around 400 percent.

The company's acquisition plan saw Spirit make what it called its most significant acquisition to date with the Trident Business Group, which includes Trident Computer Services and Neptune Managed Services. The two will be merged into a new $34 million business unit, Trident IT Solutions, which caters to medium-sized businesses and caters to health, education and aged health care customers.

Spirit has also been on an acquisition tear, the most significant of those, according to Spirit’s results announcement (PDF), is the Trident Business Group, which includes Trident Computer Services and Neptune Managed Services. The two will be merged into a new $34 million business unit, Trident IT Solutions, which caters to medium-sized businesses and caters to health, education and aged health care customers.

Spirit offered up some of its plans for Trident: it plans to launch Trident IT Solutions nationally along with cloud, security and MSP products cross-sold on the Spirit X platform.

Spirit X is a B2B internet and telco marketplace aggregator platform which has 100,000 addresses on its books ready to be serviced. Spirit is aiming to recruit 300 active partners and resellers to the platform by December 2020.

Spirit’s shares remained steady at 20 cents each at the time of writing, having not seen any significant movement since February 2019.