A Christmas Eve investment in Bristol IT support

Smarter Capital concluded 2022 with the acquisition of a minority stake in Refresh Support Ltd, a Bristol-based provider of managed IT support and technology solutions.

The transaction was completed on 24 December 2022 and represented an important step in the group's diversification beyond digital marketing, design, development and ecommerce.

It also established the foundation for what would become Smarter Capital's dedicated IT vertical.

Launching the Support Services vertical

The original Support Services vertical was designed around UK businesses capable of supplying essential services to companies within the group while continuing to serve and grow their external client bases.

Refresh Support provided a strong starting point, bringing recurring managed-services revenue, technical expertise and an established base of SME customers.

An established and approachable MSP

Founded in 2011 by Mark Burgess and Mark Graham, Refresh Support had achieved continuous year-on-year growth before joining the group.

The business specialises in comprehensive IT support and technology solutions for SMEs across the region.

Its reputation is built around a friendly, approachable service model supported by a dedicated IT helpdesk based in Yate, Bristol.

Refresh Support's services include

• Managed IT support and helpdesk services.
• Microsoft 365 and business-email support.
• Cloud, hosting and data-backup solutions.
• Cyber-security protection and advice.
• Technology planning and ongoing account support.

Finding the right partner for the next stage

Mark Burgess said the Refresh team had been considering its next strategic move and growth plan for some time.

Having known members of the Smarter Capital team and seen the success of their previous ventures, he felt the partnership was a natural fit for the business.

Access to a broader support network

Mark Graham highlighted the value of the wider Smarter Capital support network.

He noted that running and scaling a business creates inevitable challenges, and that joining a larger group would provide more capability, experience and support.

Although the founders' ownership would be reduced, the objective was to increase the overall value of their remaining shareholding through accelerated growth.

A comprehensive growth plan

The initial plan involved a detailed review of Refresh Support's products and services, followed by the development of a stronger sales and marketing strategy.

The partners intended to pursue new customers more aggressively, expand the team and broaden the company's operational reach.

Initial priorities included

• Reviewing the existing product and service portfolio.
• Developing a robust sales and marketing strategy.
• Increasing new-business activity.
• Expanding the Refresh Support team.
• Extending the company's geographic and operational reach.

Combining technical service with commercial capability

Mark Callaghan said he had known the Refresh team for an extended period and admired their commitment to service quality.

The investment was designed to combine Refresh Support's technical expertise and customer relationships with Smarter Capital's sales, marketing, finance and operational capabilities.

The objective was to scale the business quickly while maintaining profitability and service standards.

Broadening the group's sector focus

At the time of the acquisition, Smarter Capital was already focused on digital marketing, design, development and ecommerce businesses.

The addition of Refresh Support introduced a dedicated IT focus and set the group's wider expansion plans in motion.

The stated target was to grow group revenue to £12 million by the end of 2024 through a combination of acquisitions and organic development.