GrowthOps debuts on the Australian Securities Exchange
Entrepreneurial advisory and operations partner, Trimantium GrowthOps Limited (ASX: TGO, “GrowthOps”), will debut on the ASX today at 12pm (AEDT), following a $70 million IPO, valuing the company at approximately $143 million on a fully diluted basis, with an estimated $95 million market cap.
The IPO was priced at $1.00 per share and raised $70 million, with strong backing from international and strategic cornerstone investors.
GrowthOps Founder and Managing Director, Phillip Kingston, said the IPO will fund ongoing historical growth rates, increase the size of projects they can undertake, and complete the acquisition of eight independently profitable and growing businesses into a single company.
“Through the IPO, 15 entrepreneurs have merged their eight successful, specialist businesses to create GrowthOps,” Mr Kingston said.
“Now more than ever, a truly integrated approach is crucial for businesses and governments to overcome the urgent threats, as well as capture the opportunities, posed by technological disruption.”
“Our clients want a single, accountable, execution partner spanning creativity, technology and leadership to solve complex challenges and develop new products, services and growth strategies.”
“Since the announcement of the IPO, we have continued to deliver strong operational performance for our clients and maintained positive momentum in building GrowthOps.”
The company is pursuing the evolving and fast-growing business transformation services market. Estimated at approximately $85 billion in Australia alone, the market includes the converging industries of management consulting, technology, and advertising and creative.
GrowthOps Chairman Dominique Fisher believes that while these industries have historically served corporate and government clients on a siloed basis, they are now converging.
“The convergence we’re witnessing is a result of both client demand for a single accountable partner and consumer demand for technology-enabled products and services,” Ms Fisher said.
“The alternative to engaging GrowthOps is for our clients to coordinate a myriad of individual specialist firms, many of which aren’t structured to share risk and return with their clients.”
“Meanwhile, consumers expect seamlessly integrated products, services, support and engagement, so it only makes sense that organisations have a seamlessly integrated advisory and operations partner to meet those expectations.”
GrowthOps Managing Partner Paul Mansfield observed that there are very few organisations that can create as well as execute a strategy.
“It’s one thing to create a strategy but quite another to execute it. We’re a group of entrepreneurs with experience and knowhow in both,” Mr Mansfield said.
“We have maintained positive momentum in building our sales pipeline through organic client wins and cross-selling between the eight businesses. And while each business was operating separately prior to the completion of the IPO, we have already established a positive operating rhythm and culture.”
“In a single company, our capabilities provide a compelling end-to-end solution for the development and execution of new products and services.”
The legacy businesses that now comprise GrowthOps include 3wks, jtribe, Digital Moshi, KDIS, AJF Partnership, Khemistry, Voodoo Creative, and the Institute of Executive Coaching and Leadership (IECL).
Mr Kingston believes these businesses possess unique and complementary skills and relationships across the entrepreneurial value chain.
“They have an average trading history of 11 years delivering management consulting, technology solutions, and advertising and creative services,” Mr Kingston said.
“Their leadership program for Qantas’ Supply Chain Department achieved increases of 15% in employee engagement and availability of parts to 92%. They used virtual reality to increase Australia Zoo’s Chinese visitors by 56%. They’ve completed a machine learning pilot for one of the world’s largest banks to reduce loan processing times from days to minutes. They transformed the user experience on a highly classified, whole-of-government project, delivering major improvements to critical government processes. And they created the ad campaign that built Australia’s number one iced coffee brand, with 150% growth over six years.”
“This is just a tiny snapshot of the experience we possess as a group and we are also already seeing great outcomes from our joint offering.”
“We recently moved an Asian insurance company to the cloud, securing regulatory approval, delivering significant savings, and improving security and customer service. Other joint projects we have underway include building a global B2B robo advice platform to provide our client with a true end-to-end service, and transforming one of the biggest wealth managers in south east Asia by helping them go digital.”
GrowthOps’ capabilities include: analysis of market threats and opportunities; leadership development; change management; cloud services; software development; systems integration; positioning and brand strategy; and marketing communications.
Revenue and net profit after tax and amortisation (NPATA) for the Group in FY18 is expected to be in line with the Prospectus pro forma forecast of $61.3 million and $9.8 million, respectively.