Idesta Growth Plans for 2002

Idesta, the company which designs, develops and deploys web-enabled software applications for mobile devices, is looking for a 60% increase in 2002 revenues from the rapidly-growing European wireless market.

Claiming to have a 12-month lead in what remains an untapped sector, Idesta is aiming to boost turnover from 4 million euros (£2.5m) to 6m (£3.7m) next year as the number of people employed in its HQ in Hillington Park Innovation Centre doubles to 60.

With 75 live customers in place, the company also claims order flow has been unaffected by the global slowdown following September 11, with David Farquhar, Idesta's chief executive, describing its current order book as 'superb'.

Idesta's flagship software programme -- launched in October last year -- is designed to allow a mobile workforce to work off a mobile platform (from PDA to internet-enabled mobile phone), exchanging information over the web between themselves and a head office.

The software gives sales people, maintenance staff or other mobile employees access to programs held on their company's central computer systems. Users can continue to access these programs even without an internet connection, with new data being automatically uploaded after reconnection.

With the software designed to fit with the specific business processes of the client, the company can provide systems to handle anything from 10 to 1000 users. Current clients include multi nationals such as Unilever Interbrew, the world's second-biggest brewer, as well as smaller companies .

According to Farquhar, although more than 70% of the wireless software market is dominated by just two companies -- the US's Intermec Technologies and the UK's Psion -- the remainder of the market is highly fragmented, consisting of dozens of small firms operating regionally: 'It's inevitable this market will be driven more mainstream and we aim to be leader at the high end. We can provide software to all devices such as PDAs, laptops, iPaqs, Psions, and GPRS mobiles.

'Every sale is based on a return of investment as that's key to our customers. There are two reasons companies use mobile devices -- to make savings and productivity gains. We are not selling technology, we are giving them a company pitch and helping them to improve their processes.'

Idesta employs more than 100 people across nine offices in seven countries -- including the Netherlands, Denmark and Dubai. Farquhar says it is focused on 'victims of geography' in the growing European market. With about 40m mobile workers in Europe, Idesta believes 17m of them are located in its target market in north-west Europe.

This geographic focus will also see the company handle its accounts and invoices in euros, with second-round funding -- also being sought later this year -- carried out in that currency.

Farquhar, who founded the company in June 2000 with a £900,000 investment, argues that small regional players will be unable to handle market growth, while larger international software companies, such as Oracle and SAP, have yet to turn their wireless strategies into reality.

The company is also expected to make further acquisitions this year to boost its growth plans. Prior to 2001's funding package, it purchased a Benelux-based provider of field service technology and a leading supplier in the UK and Middle East of van sales systems and software.

'We are targeting blue-chip companies and early technology adopters,' says Farquhar, 'and it's really about bringing corporate credibility to a Cinderella marketplace.'