By Kristy Dorsey

IT services company Stellar Omada is preparing for its first product launch next month following a year of triple-digit growth and the appointment of its first chairman.

The Edinburgh-based company, which aims to become a £100 million turnover businesses within the next four years, has brought on Royston Hoggarth to help guide the business through its next phase of expansion. A former executive with industry corporates such as IBM, Logica and BT, Mr Hoggarth is also chairman of Hampshire-based Innovation Group, XIS Processing of Cheshire, and Cirrus Response in Surrey.

Founded in 2018, Stellar Omada grew out of the freelancing business of owner and managing director Colin Frame. It specialises in technology transformation, testing services and programme delivery with clients that include major players such as Royal Bank of Scotland and cheque processing specialist Intelligent Processing Solutions Ltd (iPSL), where Mr Frame worked prior to setting up Stellar Omada.

“We didn’t go through any growth or debt funding,” he said. “We set ourselves up around the digital cheque clearing project that was our first contract and we built it from there.”

HeraldScotland: Royston Hoggarth, the newly-appointed chairman of Stellar OmadaRoyston Hoggarth, the newly-appointed chairman of Stellar Omada

Staff numbers at the Scottish start-up surged from 15 to 100 last year and it continues to hire as it prepares to launch its first two cloud software products within the next few weeks. Mr Frame said it is hoped that revenues from product sales will account for between 30 and 40 per cent of revenues within the next two years.

Income from its services business hit £10.1m during the 12 months to the end of December, up from £2.4m in 2019. Pre-tax profits came in at £1.4m, up from a loss of £200,000 previously.

“We were delighted with the second-year results and we would like to thank our clients and staff for putting their trust in the company,” said Zoe Lee, chief financial officer at Stellar Omada.

“Looking ahead, we are on track for continuing and significant revenue growth again in the current year, our balance sheet is strong and well-positioned to support the strategic direction of the business going forward.”

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The company is targeting revenues of £18m in the current financial year, with results in the first quarter on track to achieve that. Asked about future funding, Mr Frame said the business “may” explore partnering opportunities, but has no plans to sell any equity.

Speaking of the appointment of Mr Hoggarth, who is also the chairman of England Hockey, Mr Frame said his skills are a “must have” that will open new doors for the company.

“Stellar Omada is one of the fastest-growing fintech businesses in the UK, and we’re excited to bring Royston on board to help guide us through our next phase of growth," Mr Frame added.

"Royston brings invaluable experience from the technology and financial sectors and an incredible network of contacts, both in the UK and internationally, which will enable us to grow the business even more rapidly.”

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Mr Hoggarth said: “I have had the pleasure of getting to know Colin and the Stellar Omada team over the last few years, including during my time with Intelligent Processing Solutions Ltd, and have been greatly impressed with the company’s pragmatism and operational focus in delivering results for clients.

"Stellar Omada is one of the most exciting fintechs on the UK scene, and I look forward to supporting the company’s trajectory in the months and years ahead.”

Mr Frame said the company is targeting £100m in annual revenues by 2024. This is expected to be driven by continued organic growth in its core market in the UK financial and technology sectors, the new product launches, expansion into other areas such as the UK’s utilities and public sectors, and international contract wins.

New client wins in 2021 include London-based wealth manager Seven Investment Management (7IM), which attracted a record £624m of total inflows to its platform in the first three months of this year.