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The National Police Chiefs’ Council (NPCC), in partnership with UK Research and Innovation (UKRI), has announced details of the nine Policing Academic Centres of Excellence (P-ACEs) that will launch in October 2025.
Backed by funding of £4.5m, the P-ACEs are intended to improve connections between academic researchers and policing, making it easier for law enforcement to draw upon the latest research evidence, science, and technological advances. This includes showcasing key insights, findings and outputs from their work, responding to request for evidence from policing, and working in partnership with policing to co-develop new research and knowledge exchange activities.
The following universities have been selected to be P-ACEs:
- Edinburgh Napier University, with Glasgow Caledonian University, University of St Andrews and University of Edinburgh
- Lancaster University
- Manchester Metropolitan University, with University of Manchester
- Nottingham Trent University
- University College London
- University of Bath
- University of Birmingham, with Aston University and University of Leicester
- University of Leeds, with University of York
- University of Portsmouth
The initiative also aims to improve industry engagement through improving the connections between industry, academia and policing, to create shared understanding and better partnerships. This includes assessing technologies developed outside of policing domains that could offer benefits in a policing context but may require further testing for these benefits to be realised fully. Opportunities for industry are likely to align with policing’s Areas of Research Interest (ARIs), which include taking advantage of emerging technologies, analytics, AI, biometrics, drones etc.
It is vital that policing engages more effectively with the research and innovation system and builds stronger industry partnerships if it is to counter emerging threats, such as those enabled and augmented by AI. Although the amount of funding allocated to P-ACEs is small compared to the scale of the challenge it is an important step in the right direction.
Posted by: Dale Peters at 10:14
Tags:
funding
police
research
innovation
collaboration
partnership
law+enforcement
public+safety
Following a competitive tendering process which began in March last year, the BBC has chosen to Serco to replace long-time incumbent Capita as the provider of BBC Audience Services in a five-year deal (with the option to extend for three one-year periods) – worth c. £40m, if all options are exercised. It’s a significant win for Serco, which reported declining revenue (though improved profitability) in FY24 – see Serco improves profits on declining revenue.
Capita has run the services for 25 years (the contract was last up for grabs in 2018, when the company won a further renewal)... and a lot’s changed in customer services delivery over that time.
Though the new contract with Serco, due to begin in 2026 (after a “12-month transition period”), still highlights the same broad needs that there have always been – answering queries from the public on programmes and services, managing the initial stage of the BBC’s complaints process, taking donations, attracting audiences to studio recordings and for participation in shows, capturing audience feedback, tech support for iPlayer, artist mail, etc. – Serco have indicated that they’re looking to “introduce new ways for audiences to interact with the broadcaster”.
The tender invited suppliers to help the BBC assess how AI might enhance audience services and drive efficiencies (for instance, sifting and sorting contacts on the same issue, drafting responses, and FAQ chatbots). The corporation is also looking to make better use of the rich data these audience interactions provide, to drive better insights. Any and all of this will also require close working with the Beeb’s long-term Technology Services partner, Atos.
With phone lines still remaining the traditional way for many to contact Auntie, licence payers will await news on how (more) digital the BBC’s front door will become… and how swiftly.
Posted by: Craig Wentworth at 10:01
Tags:
contract
CX
IT services provider Version 1 has secured its largest UK public sector contract to date, having been appointed Digital Support Partner for the Digital and Data Division of the Scottish Government Agriculture and Rural Development Economy (ARE) Directorate.
ARE is responsible for promoting sustainable economic growth in agriculture, the food industry, and in rural areas. This includes delivering payments and support services to rural customers across Scotland. The directorate identified the need to modernise the technical architecture and support schemes that underpin these services and has a stated intention to exploit digital technologies to create new customer-centred services.
Seeking to replace two longstanding, support and maintenance contract arrangements, ARE first approached the market about the support partner opportunity in 2023, with the subsequent contract notice being released last year. The primary intention of the contract is the retirement of legacy systems and the upgrading and enhancement of current services. Although the contract provides scope for some new development work, any major new service designs and developments are likely to be subject to separate contractual arrangements.
Version 1 was able to draw on its extensive experience of delivering digital services in the government agriculture space, where it has developed a dedicated practice. The company has a long history of supporting the Department of Agriculture, Food and the Marine (DAFM) in Ireland, the Department of Agriculture, Environment and Rural Affairs (DAERA) in Northern Ireland, and the Rural Payments Agency (an executive agency, sponsored by Defra) in England (see Version 1 celebrates significant wins).
Commenting on the contract award, Nick Downes, Chief Digital and Data Officer, ARE Digital and Data Division, said, “Farmers, crofters and rural communities are front and centre of our services, and Version 1 clearly showed expertise in understanding the detailed business rules and mechanics needed in delivering solutions that can achieve that. We were impressed by their expertise in their grasp of our environment, and critically, how to bring fresh learnings and digitally enabled approaches for improvements such as data-led policy planning, vitally important for rural land use.”
The contract has a stated value of £95m over its full seven-year term, making it Version 1’s largest UK public sector contract to date. It represents another important step in the company’s plans for growth, which are being driven by its ability to secure strategic public sector deals in the UK. It follows the strategic partnership contracts Version 1 secured with Companies House in 2023 (see Version 1 lands strategic partnership with Companies House) and National Highways in 2024 (see Version 1 secures long-term partnership with National Highways).
Posted by: Dale Peters at 10:00
Tags:
contract
scotland
government
agriculture
partnership
Congratulations to those suppliers that have made it into the Leading Pack for this year’s Market Readiness Index (MRI) report: Market Readiness Index: The Road to AI Part 2.
The MRI report is one of the core research outputs for our Tech User Programme (TUP) for CIOs and other senior tech buyers. It is based on a proprietary assessment 
methodology developed by our analysts to understand and quantify the performance of tech suppliers.
This edition has been specifically created to enable senior tech buyers to ascertain their compatibility with the leading UK IT Services providers in order to support their AI journey.
By applying our highly regarded, rigorous research approach, TechMarketView analysts have assessed suppliers across six areas as they pertain to AI: Corporate Resilience; Suitability of Offerings; Skills & Resources; Partner Ecosystem; Industry Expertise; and Delivery & Execution. This involves undertaking multiple in-depth research interviews with various functions/leaders within the supplier organisation to gain an extensive understanding of strategy, capability, investments and so on. Much of this information is not available in the public domain, and combined with our proprietary data and analysis, enables our analysts to construct unique profiling of suppliers.
Market Readiness Index: The Road to AI Part 2 is a combination of scoring and in-depth profiles giving a realistic and honest appraisal of the readiness of each supplier to address the AI – and in particular the Generative AI – needs of the market.
Those in this year’s cohort sit within the second half of the Top 20 ranking players in the UK market (based on TechMarketView analysis). They are: BT Group, CGI, Deloitte, Fujitsu, Kyndryl, NTT Data, PwC, Sopra Steria, Tech Mahindra, and Wipro.
The 2025 Leading Pack
We’ve pored over the data and scoring, grilled the vendors, and spoken candidly with buyers and can now reveal that the Leading Pack (i.e., those suppliers exceeding the average score for the overall group in each category) consists of: Deloitte, PwC, NTT Data, and Wipro. Big congratulations!
Nonetheless, we highly recommend that you read the full report to understand the narrative behind the scoring and which suppliers are best suited to your aims and culture.
And read The road to AI: Mapping the readiness of the Top 10 IT & Business Process Services Suppliers, for the complete picture on the Top 20.
If you are not a member of our Tech Buyer community, you can purchase the report by contacting Deb Seth.
Posted by: HotViews Editor at 09:37
Tags:
AI
MRI
Many of our readers will know Lord Kulveer Ranger of Northwood (pictured) from his career spanning government and technology leadership. As the first British-born, turban-wearing Sikh to sit in the House of Lords and a key Science and Technology Committee member, Lord Ranger has consistently advocated for digital transformation in the UK.
Now, digital technology company Scrumconnect Consulting, which seeks to apply a data-first, user-focused approach when working with clients including the Home Office, HMCTS, DWP, and DfE, has announced that Lord Ranger has joined the company in a strategic advisory capacity, as it seeks to accelerate its growth trajectory.
Lord Ranger brings over 25 years of experience spanning government and private sector roles. His career includes serving as a senior executive at Atos, leading strategy and communications across Northern Europe, APAC, and India. During Boris Johnson's London mayoralty, Lord Ranger was instrumental in implementing several high-profile digital and infrastructure initiatives, including the London cycle hire scheme, Crossrail, the London 2012 Summer Olympics, and the Mayor of London's digital strategy.
Currently active in the House of Lords Science and Technology Committee and involved with All-Party Parliamentary Groups on Digital Money and Artificial Intelligence, Lord Ranger remains at the forefront of technology policy development in the UK. He brings a compelling vision of "digital society 2.0" - a future where technology is so deeply embedded in society that it transforms public services beyond basic digital interfaces to create intuitive, frictionless citizen experiences powered by AI, quantum computing, and enhanced cybersecurity. As Lord Ranger explained when we interviewed in late 2023 (see Interview with Lord Kulveer Ranger of Northwood: The convergence of politics and technology | TechMarketView), "We can stop saying digital because we're going to be a society that is technologically driven, and it will be entwined in everything we do."
In his new role, Lord Ranger will work closely with Scrumconnect's senior leadership to guide the company's next growth phase, providing strategic counsel across business development, marketing, and public affairs.
Scrumconnect has established itself as a delivery-focused consultancy supporting digital transformation across the public and private sectors. The Financial Times has previously showcased Scrumconnect as one of the fastest-growing companies in Europe, highlighting a revenue CAGR of 126.3% between 2019 and 2022. However, growth appears to have slowed. In the company’s financial year to 31st March 2024 (the last filed accounts), it reported revenues of £24.9m, up 7% compared to FY23.
Scrumconnect Consulting's husband and wife founders, Praveen Karadiguddi, CEO, and Shilpa Kaluit, CFO, will look to Lord Ranger to boost performance during what is a tumultuous time for the UK public sector market.
Posted by: Georgina O'Toole at 09:16
Tags:
appointment
digital
public+sector
London-listed real-time intelligence provider, FD Technologies has received a cash offer of c.£550m from Boston-based private equity firm, TA Associates. The bid of £24.40 per share represents a 27% premium on Tuesday night’s closing price for the Newry-HQ’d business. The company issued statement yesterday stating that the Board is minded to recommend the deal to shareholders.
Founded in 1996, FD Technologies today employs some 3000 personnel across its global operations. Over the last twelve months, the company has been pursuing a strategic restructuring to establish a singularity of focus on being a pure play provider of advanced analytics software targeted on opportunities around AI.
Last summer saw FD Technologies spin out its predictive intelligence arm, MRP through a merger in which it retained a 49% stake with CONTENTgine. In December the company sold its Financial Markets consultancy business, First Derivative, to EPAM Systems (see here) netting proceeds of £205m. Both of these arms of the business had been in decline.
Turnover from the remaining KX division, for which around £54m from the EPAM deal was retained for investment, grew by 4.8% in the first half of FY25 to reach £39.5m with recurring revenue rising by 13% to £37.2m and total software increasing by 12% (see here). KX applications are underpinned by a powerful analytics engine that has been independently verified as the fastest available on the market. This is clearly a significant differentiator for the vendor and has helped FD Technologies establish strong customer relationships across high-performance, data-intensive sectors such as financial services, aerospace & defence, high-tech manufacturing, and healthcare & life sciences. TA believes it can support the company in maximising KX's market opportunity by investing behind new technologies, especially as KX competes in a more disruptive, AI-focused environment.
The logic behind the deal appears to be sound for both parties. Assuming the transaction goes ahead, however, it will see yet another UK tech company fall into US ownership. The takeover would also add to the woes of the AIM market should FD Technologies de-list post its purchase by TA.
Posted by: Duncan Aitchison at 09:12
Tags:
acquisition
software
analytics
AI
data
financial+services
private equity
financial+markets
Business process specialist Genpact has reported solid Q1 2025 results, with net revenues reaching $1.215bn, representing a healthy 7.4% YoY increase (8.3% in constant currency). The firm's strategic pivot towards advanced technologies continues to pay dividends, with Data-Tech-AI revenues growing by 11.1% to $582 million, now accounting for 48% of total revenue.
Profitability metrics were particularly impressive, with adjusted diluted EPS rising 16% to $0.84 and adjusted operating margin expanding to 17.3%. Cash generation also improved significantly, moving from a $26m outflow in Q1 2024 to a $40m inflow.
However, despite this strong quarterly performance, Genpact has notably downgraded its full-year guidance. Annual revenue growth projections have been reduced from 5.5%-7.5% to a more modest 2.0%-5.0%, with adjusted EPS expectations also trimmed.
CEO Balkrishan Kalra acknowledged the changing operating environment since January but remained confident in the company's business model, highlighting its process expertise and AI capabilities as key competitive advantages. This cautionary outlook revision suggests Genpact is witnessing slowing demand, particularly in its traditional Digital Operations segment, which is now forecast to grow just 2.0% for the year, significantly below previous projections.
Posted by: Marc Hardwick at 09:09
Tags:
results
bps
Conduent's Q1 2025 results paint a mixed picture for the business process services player, with encouraging margin improvement set against a backdrop of significant falls in revenue.
The firm reported adjusted revenue of $751m, down -8.5% YoY, whilst adjusted EBITDA margins increased by 50 basis points to 4.9%. This margin improvement, ahead of management expectations, suggests the company's efficiency programmes are beginning to deliver tangible results.
New business signings ($109m) and net ARR activity metrics ($116m for trailing twelve months) both improved YoY, providing some early indicators that future growth prospects may be stabilising. However, these pluses are tempered by some worrying cash flow numbers, with operating cash flow deteriorating by -56.8% compared to Q1 2024 – explained by management as being “negatively influenced by several one-time events in 2024”.
Management remains optimistic on achieving their portfolio rationalisation target of over $1bn in deployable capital, maintaining their previously outlined 2025 exit rate targets (see Further divestment at Conduent. The firm also continues to secure contracts in transportation, healthcare and government services, whilst advancing its AI capabilities through traditional and GenAI applications. For example, the company launched Conni, an GenAI virtual assistant, designed to strengthen quality of inquiry results and improve CX across Conduent’s client platforms.
Despite macroeconomic uncertainties, CEO Cliff Skelton suggests Conduent's business segments remain relatively insulated from broader economic challenges, with the company reaffirming its full-year outlook.
Posted by: Marc Hardwick at 08:17
Tags:
results
Posted by: HotViews Editor at 07:00
The latest episode in TechMarketView's series of Totally Sust podcasts sees SustainabilityViews’ Research Director, Craig Wentworth, interview Kanika Chandaria (Climate Lead at Agreena) and Thomas Gent (regenerative famer and founder of Gentle Farming) about how Agreena connects farmers implementing regenerative practices with corporations seeking to meet sustainability targets; and how Gentle Farming’s experience (practicing no-till farming since 2008) shows that regenerative agriculture isn't just environmentally sound – it's financially viable.
Tune in to discover how Agreena has scaled its platform to operate across 20 countries with 4.5 million hectares under management (and partnerships with over 2,000 farmers). Learn about its cutting-edge measurement technology that combines satellite imagery with soil sampling to verify carbon sequestration with scientific rigor, building trust in environmental outcomes.
The conversation offers valuable insights into how regenerative farming delivers multiple benefits beyond carbon (including increased biodiversity and greater resilience against climate extremes), while exploring practical pathways for both farmers considering the transition and corporations looking to support sustainable agriculture in their supply chains and sustainability strategies.
A 6-minute snippet of the podcast is available to stream for free now on SoundCloud and Spotify (or you can click on the image link below).
Subscribers to our SustainabilityViews research stream, however, can stream or download the full 40-minute version of the episode. If you are not yet a subscriber, or are unsure if your company has a subscription, please contact Belinda Tewson to find out how you can access the research.
Posted by: Craig Wentworth at 09:59
Tags:
podcast
carbon credits
soil carbon
RegenAg
regenerative agriculture
regenerative farming
RM has signed a contract with IEA (International Association for the Evaluation of Educational Achievement) to provide the digital platform that will support the next iteration of the Trends in International Mathematics and Science Study (TIMSS).
Directed by IEA's TIMSS & PIRLS International Study Center at Boston College's Lynch School of Education and Human Development, TIMSS is an international assessment of student achievement in mathematics and science. Taking place every four years, it has been measuring trends in achievement and attitudes of 9- to 10-year-olds and 13- to 14-year-olds since 1995. More than 650,000 students in 64 countries participated in TIMSS 2023, including 8,330 pupils in years 5 and 9 across 267 schools in England.
RM is a longstanding partner to IEA, supporting both its TIMSS and PIRLS (Progress in International Reading Literacy Study) work. The 2023 TIMSS programme was the first time assessments were conducted digitally. This was facilitated through RM’s Assessment Master platform.
Following the new deal, the Assessment Master platform will continue to support the delivery of the study in 2027. The platform will support multilingual testing and provide a wider range of question types (including graphical formats) that go beyond what is possible through traditional paper-based assessments. TIMSS 2027 will also combine automated marking with artificial intelligence (AI) assisted human review to enhance scoring accuracy and consistency.
RM's strategy to develop an end-to-end digital platform for examinations, authoring and accreditations is progressing well. Its RM Assessment division more than doubled its contracted order book in 2024 after securing extensions to several longstanding commercial partnerships (see RM delivers platform for growth). Its work with IEA provides another opportunity for RM to demonstrate its assessment delivery support and innovation credentials on a global scale.
Posted by: Dale Peters at 09:56
Tags:
contract
education
AI
schools
assessment
edtech
The recent bout of cyber-attacks targeting retailers M&S, Co-op and Harrods surely has many organisations in the industry (and elsewhere) looking over their shoulder, wondering who will be next in the crosshairs. The initial attack on the M&S caused huge disruption to online orders, contactless payments, Click & Collect services and caused delivery delays with some stores left with empty food shelves. (See - M&S cyber breach linked to Scattered Spider ransomware)
Co-op was attacked but a few days later, and while it has taken some time for more details to come to light, it turns out things were worse than the retailer initially led people to believe. Co-op initially said that it had taken "proactive measures" to fend off hackers and that it was only having a "small impact" on its operations, with "no evidence that customer data was compromised".
However, hackers contacted the BBC with proof they had infiltrated IT networks and stolen huge amounts of customer and employee data (reportedly private information of 20m people who signed up to Co-op's membership scheme). The Co-op then confirmed on Friday that the hackers "accessed data relating to a significant number of our current and past members". The cyber criminals are believed to be the same Scattered Spider community who attacked the M&S, acting as affiliates for the DragonForce ransomware operation.
Co-op staff were also urged to keep their cameras on during Teams meetings, ordered not to record or transcribe calls, and to verify that all participants were genuine Co-op staff. The security measure appears to be a direct result of the hackers having access to internal Teams chats and calls, which is a particularly concerning development.
The threat actors appear to have utilised similar tactics to the attack on M&S, reportedly conducted a social engineering attack that allowed them to reset an employee's password, with hackers impersonating employees while contacting the retailers' IT help desks. Access was then used to breach the network and steal the Windows NTDS.dit file that contains password hashes for Windows accounts. Co-op is now in the process of rebuilding all of its Windows domain controllers and hardening Entra ID with the help of Microsoft DART. KPMG is assisting with AWS support.
Such cyber attacks continue to put more pressure on organisations to harden their defences, especially when it comes to identity-based attacks. Breaches like we have seen at the M&S and Co-op are not the result of advanced network intrusions, but frankly rather basic social engineering. Organisations need to invest as much (if not more) into cybersecurity as they are into AI right now, in particular in strengthening identity verification controls (such as MFA, passkeys and zero-trust controls).
Posted by: Simon Baxter at 09:51
Data centre and Managed Services Provider, Redcentric, has this morning announced that Michelle Senecal de Fonseca will become the company’s new CEO.
Senecal de Fonseca knows the business as has been a Non-Executive Director there since February of last year. She is a highly experienced Exec having previously been Managing Director for Vodafone's Cloud and Hosting Services business and, prior to that, Global Vice President for Strategic Alliances at Citrix. I first met her when she was in a leadership role at Cable & Wireless, which was subsequently acquired by Vodafone in 2012.
It is a welcome move by Redcentric, demonstrating needed stability at the top. In April, the firm announced the immediate departure of Brian Woodford, Executive Director and CEO designate. Personal reasons were cited. At the time, Peter Brotherton (the existing CEO) pledged to stay on for leadership continuity. Indeed, Brotherton, who has played a key role in the firm’s evolution, will remain on hand in an advisory capacity.
Redcentric has also issued an FY25 trading update today. Revenue is up 4.2% to £170m, with recurring revenue up 4.0% to £155m. The firm has put considerable time and energy into dividing its two core businesses (Managed Services and Data Centres) into separate units. It has also undertaken an integration programme to address prior acquisitions.
The firm has certainly been getting its house in order, and it’s now over to Senecal de Fonseca to drive things forward in FY26.
Posted by: Kate Hanaghan at 09:45
Tags:
appointment
datacentres
CEO
In further evidence that Atos UKI CEO Michael Herron means business in his endeavours to put the foundations in place for a return to profitable revenue growth next year, the company has announced the appointment of Mike Hill FBCS as its new Head of Data & AI for UK & Ireland.
This strategic hire represents another key piece in Herron's transformation puzzle, as he continues to build his leadership team with the right individuals to drive change. As Herron outlined in our recent "View from the Top" podcast (see *Watch now*: View from the Top - Atos UK&I's new CEO Michael Herron | TechMarketView), 2025 is about "fixing the foundations" to return to growth in 2026 – and Hill's appointment directly supports this vision. It also aligns with Herron's focus on "building a culture of a disciplined business and winning behaviours," a key pillar of his transformation strategy now entering the operational phase.
Hill brings impressive credentials from previous senior ICT roles in government, including Chief Digital Information Officer at the Cabinet Office (2022-2024) and Director of Police & Public Protection Technology at the UK Home Office (2020-2022). In the latter role, he delivered the CIO function to the Home Office Public Safety Group and Homeland Security Group Missions, while serving as Senior Responsible Owner for the National Law Enforcement Data Programme (NLEDP) and the National ANPR Service (NAS) Programme.
The appointment has particular significance for Atos's public sector ambitions. When Herron was at CGI (leading the UK Central Government business unit), the company secured significant strategic partner contracts with both the Cabinet Office and Home Office during Hill's tenure at these organisations, suggesting a strong working relationship and potential alignment in approach.
As Herron builds his executive team, he's following a deliberate strategy: one-third previous leadership picks, one-third from Atos's emerging talent pool, and one-third external hires bringing fresh perspectives. Hill falls into this third category, bringing not only data and AI expertise but also an established network across central government that could prove invaluable as Atos rebuilds momentum.
In his LinkedIn announcement, Hill expressed enthusiasm about joining "a fantastic Atos team" and noted that his early interactions revealed "a lot of passion, commitment and capability; supported by a positive and empowering culture."
This appointment comes as Atos works to overcome recent challenges (Atos Q125: Reflection of 2024 client caution | TechMarketView). However, as noted in our recent coverage, Herron has hit all UK&I Q1 financial budget targets he inherited and is progressing in exiting low-margin contracts while positioning for a 2026 revenue rebound. Evidence that his actions are taking effect transpired in Q1 with the UKI rolling 12-month book-to-bill standing at 104%, and a significant reduction in the cost base.
For more insights on Atos's transformation journey and Herron's leadership approach, listen to our recent "View from the Top" podcast featuring an in-depth conversation with the UK&I CEO.
Posted by: Georgina O'Toole at 09:27
1Spatial's FY25 results outline a company on a journey towards a software-centric business model, despite challenging market conditions. The ‘Location Master Data Management’ specialist delivered a 3% revenue increase to £33.4m, with software sales (term licence and SaaS) climbing an impressive 35% to £11.5m (progress we reported on at the halfway point in the year – see 1Spatial gets its ducks in a row).
Particularly noteworthy is the significant uplift in recurring revenue, now representing 62% of total income (up from 56% in FY24). SaaS solutions revenue surged fivefold to £1.0m, highlighting the firm's successful pivot towards higher-margin subscription offerings (see 1Spatial working to deliver on SaaS potential).
The company's 1Streetworks SaaS solution emerges as a bright spot, having secured three major contracts including Surrey County Council (£1.0m) and post-year-end, Kent County Council (£0.5m). The solution has demonstrated tangible benefits, including a 40% reduction in road closures for UK Power Networks.
However, operational challenges persist. US professional services underperformed, and the delayed start of a large Belgian contract impacted overall results. Operating profit declined 38% to £0.9m, reflecting increased costs and non-cash charges.
Looking ahead, management expects government procurement delays to continue hampering growth in FY26, particularly in the US. Nevertheless, the company remains committed to investments in sales capabilities across its key markets.
Overall, 1Spatial presents a mixed picture - strong progress in high-margin software offerings, tempered by public sector procurement headwinds. The company's shift towards recurring revenue streams does, however, suggest long-term resilience despite some near-term challenges.
Posted by: Marc Hardwick at 09:04
Tags:
results
data
location services
After an all but flat performance in the prior year (see here), PA Consulting’s fee income dipped by 4.7% yoy to £753m in FY24 to leave total revenue for the period down by 2.8% at £928m. Tight management by the firm of its direct and indirect costs, however, ensured that the softness in the top line did not lead to a further degradation in profitability. Adjusted EBITDA for the twelve months ended 31st December rose by 6.5% yoy to £218m to generate a margin improvement of 200 bps to 23.5%.
The going proved toughest for PA in its Scandinavia region last year. Fee income in this territory fell by almost a fifth yoy to c.£58m. The firm’s UK business, which accounts for three quarters of global revenue, slipped by 3.3% against FY23 to generate fees of £573m in 2024.
There were some brighter spots reported across PA’s business portfolio. In the Public Sector, which produces nearly two thirds of the company’s UK SITS sales, the end of 2023 saw the firm awarded a place on all six Lots within the Ministry of Defence’s Digital and IT Professional Services framework (see here). PA also expanded its share of the 2023-24 spend via the Crown Commercial Service’s (CCS) Digital Capability & Delivery category of frameworks (see here). Revenue from this channel was up 129% yoy to £89m, driven by significant wins at the Home Office, Cabinet Office and HSE. Outside of this vertical, there were notable UK IT project successes too at both Unilver and Heathrow Airport.
Little by way of commentary on the outlook for the current year was provided by the firm. PA reports that it entered 2025 with both £280 million in sales under contract and a significantly higher yoy sales pipeline. Management believes that the business has a solid foundation for growth. With no imminent prospect of a material easing in the market headwinds, however, PA still has its work cut out to reinvigorate upward momentum in the nearer term.
Posted by: Duncan Aitchison at 09:03
Tags:
results
consulting
IT+services
This morning, TechMarketView is launching the results of its Spring 2025 Edition of its Tech Confidence Index – please download your copy now here (no subscription required).
Our bi-annual report provides insights into the confidence and sentiment of the UK technology sector, with findings indicating a more cautious outlook for 2025. The overall TCI score has declined from 6.5 in Autumn 2024 to 6.1 in Spring 2025, reflecting increasing economic and geopolitical pressures.
In a major survey of UK technology business leaders, including CEOs, VPs, MDs and Sales and Finance heads, TechMarketView sought opinions on the current and future economic landscape. The findings form part of our Tech Confidence Index that we publish twice a year.
Government policy and industry sentiment
The Spring 2025 Tech Confidence Index reveals that UK tech businesses are feeling the strain of a tough economic climate. 61% of respondents rated current UK business conditions as “neutral” or “poor.” Equally, optimism about the future has declined, with only 45% of respondents expecting business conditions to improve over the next 12 months. This marks a significant drop from 60% who expressed optimism in Autumn 2024. Falling demand and declining sales emerged as the top concern, cited by 57% of respondents.
Confidence in government policy as a driver of success in the tech sector has also weakened further. Only 24% of business leaders now view the government’s impact on the tech industry as positive, compared to 43% six months ago. Respondents highlighted specific challenges, including rising National Insurance Contributions as impediments to growth.
Strategic investment priorities
Despite the economic pressures, UK tech businesses remain committed to innovation and investment in key growth areas. 84% of respondents reported plans to invest in Artificial Intelligence (AI) and Generative AI (GenAI) over the next 12 months, solidifying its position as the top investment priority. Other major areas of focus include digital transformation (51%), automation (48%), and cybersecurity (40%), highlighting a continued drive toward technological advancement and operational efficiency.
Intensifying skills shortages
Skills shortages are increasingly impacting UK tech businesses, with 54% of respondents reporting that talent gaps are affecting their ability to perform. This figure has risen from 46% in Autumn 2024, reflecting a growing challenge in the sector. The most critical skills in demand include software development (29%) and AI expertise (19%), underlining the importance of fostering technical talent to sustain growth.
The role of emerging technologies
AI and GenAI continue to lead the way as key drivers of growth for the sector, with 84% of respondents identifying them as pivotal. Other significant technologies include data and analytics (58%) and automation (48%), underscoring the importance of digital transformation in maintaining competitiveness.
The Tech Confidence Index remains an essential benchmark for understanding market sentiment and guiding strategic planning for the UK tech sector. Download your copy of the full report here.
Posted by: Marc Hardwick at 07:47
Tags:
newresearch
Posted by: HotViews Editor at 07:00
Insight’s Q1 results for the three months to end March show something of a mixed bag.
The "solutions integrator" saw a12% decrease in net revenue to $2.1bn but gross margin hit 19.3% on the back of an 80-basis point increase over the comparable period last year. Adjusted earnings per share was $2.06, down 13% year over year.
However, there were brighter spots. The firm hit its own expectations in hardware (servers and storage showed positive momentum) and is seeing momentum in AI-driven solutions. There have also been profitability improvements in IaaS and SaaS.
Although Insight’s quarterly commentary underlines the “increased volatility and uncertainty” in the market, Joyce Mullen, President and Chief Executive Officer, believes this represents a specific opportunity for Insight with its “low share position in a large and fragmented market”. Mullen’s view is that the firm can pick off opportunities where buyers want to escape complex contracts and find solutions to specific business problems with new suppliers.
In services, Insight’s Core Services revenue was down 2% as large enterprise clients “delayed services projects due to lack of market clarity”. The lag between a hardware sale and the services attached to that was a primary driver of the decline. However, it does sound like progress is being made specifically in Consulting where Insight is learning from its acquisitions in terms of methodologies and slick execution of projects.
One of those acquisitions was made by the EMEA business in summer of last year when is scooped up Brighton-based NWT. Furthermore, Mullen indicates more services acquisitions could be on the horizon.
As for the rest of the year, Insight says growth and profitability will be more heavily weighted towards H2 as it navigates partner program changes.
Posted by: Kate Hanaghan at 10:00
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results
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hardware
AI
Palantir has made an impressive start to 2025, with Q1 revenue growing by 39% year-on-year. Based on strong momentum in the US commercial sector, the company has also raised its financial guidance for the full year; however, it continues to struggle against headwinds outside of the US.
Revenue for the three months ended 31 March 2025 was up 39% year-on-year to $884m (Q1 2024: $634m), representing a 7% improvement quarter-on-quarter. Gross profit was up 37% to $711m (Q1 2024: $518m) and income from operations was $176m (Q1 2024: $81m). Adjusted income from operations, which excludes stock-based compensation expense and related employer payroll taxes, was $391m (Q1 2024: $226m) and adjusted EBITDA was $397m (Q1 2024: $235m).
Palantir’s US commercial business remains the key growth driver, with revenue improving 71% year-on-year to $255m (Q1 2024: $150m). US government revenue grew 45% year-on-year to $373m (Q1 2024: $257m), helping to boost overall US revenue to $628m (Q1 2024: $408m), year-on-year growth of 55% and quarter-on-quarter growth of 13%. Largely due to ongoing challenges in Europe, Palantir’s US business represented 71% of total revenue during the period, compared to 64% at the same point last year.
International revenue was up 12% year-on-year to $255m (Q1 2024: $228m), with 45% growth in its international government business (taking revenue to $114m) being offset by a 5% decline in its international commercial business (resulting in revenue dropping to $141m). This represented the first year-on-year decline in international commercial revenue and is likely to have contributed to the subdued response to its results by investors.
International government revenue growth was attributed to the UK, through its ongoing work with the NHS (the NHS Federated Data Platform) and Ministry of Defence, as well as its new partnership with NATO (see NATO's tech acquisition: Palantir advances military AI involvement).
Speaking about Palantir’s international performance, CEO Alex Karp said, “Europe doesn’t get AI yet. At some point in the future, it will” but he warned “It could take a couple years for Europe to understand that you just can’t spend money, you’re gonna have to spend it on things that actually work”.
Although increased defence spending in Europe is likely to benefit Palantir, its business in the region will be impacted by ongoing concerns about EU-US trading arrangements, whether the US remains a reliable partner, and the associated prioritisation of investment in data sovereignty.
For the full year, driven by US commercial growth (which is expected to grow by at least 68% year-on-year), Palantir has raised its revenue guidance to between $3.890bn and $3.902bn.
Posted by: Dale Peters at 09:58
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