April 6, 2021 9:50 am
Mode is entering an exciting phase of its 25-year history. With the arrival of Alex Tupman, our new Chief Executive Officer, and with resilient performance through the pandemic, Megabuyte (the go-to source of information on technology Companies, known for its detailed research) have been keen to speak with us for some time about our plans for the future.
Recently, Richard Cottrell Mode’s Chairman and Alex Tupman spoke with Megabuyte to discuss our history and what our vision for the future is.
The article focuses on Mode’s history as a classic regional photocopier sales business, privately run, offering end-to-end managed print services, and how it has expanded its services over the last few years.
“Mode followed market trends away from pure-play photocopier sales and into end-to-end managed print services (MPS)”. The article further adds that in 2019, after an MBO backed by Connection Capital, Mode acquired Nix Communications and “the addition of its early 2020 Nix Comms acquisition helped deliver a £6.1m 2020 EBITDA. The strategy going forward is around a trifecta of SME services: Print, Comms and IT, with Tupman’s appointment crucial to adding the latter via acquisition.”
Megabuyte goes on to comment about Mode’s “resilient print performance through 2020 with Mode faring better than most MPS businesses given its SME focus and the quick launch of an at-home print proposition, allowing small businesses to buy a print managed service for remote workers. The end result was just a single-digit reduction in print volumes which, combined with the accelerated integration of Nix allowed Mode to exit 2020 with £6.1m of EBITDA.”
So, what for Mode’s future? Well, Megabuyte was quick to highlight that Mode are “Aiming for that trifecta of SME technology services” commenting that with the integration of Nix, highlighted a whitespace opportunity into IT Services. Megabuyte commented “SMEs continue to prefer single suppliers, and Mode is well placed with many of its customers to offer IT services alongside comms and print, but currently doesn’t have much capability in this area. With Nix integrated and a proper acquisition platform now in place, Mode is on the hunt for IT MSPs that can fill that whitespace. The recent appointment of Tupman speaks to this strategy, given his experience with M&A and driving a cross-sell strategy at Conn3ct.”
“Even without an acquisition, Cottrell and Tupman expect another strong performance in 2021, as its print business benefits from a reopening of workplaces, and it continues to push its print/comms cross-sell strategy.”
So, what was Megabuyte’s view?
“Mode stands out from the relatively homogenous mid-market managed print crowd”.
“…the company seems to be the furthest along in a strategy encompassing print, comms and IT; other mid-market players talk about comms, but very few walk the walk and even fewer still talk about IT. Tupman’s appointment to the CEO position significantly highlights the latter, given his experience of driving a multi-service comms / IT strategy from his time at Conn3ct/Connect. It also highlights the enthusiasm to kick on with acquisitions and integration…”
A great first piece for Mode with Megabuyte that not only focuses on our heritage but the incredible vision of our future.
For full article details, log on to Megabuyte https://www.megabuyte.com/app/news/6059bac75f1503000b82a675/mode-aiming-deliver-trifecta-sme-services
Categorised in: Uncategorised
This post was written by Anwen Haynes