Deloitte, the business advisory firm, has today announced the results of its 2006 Technology Fast 50 awards, an independent ranking of the UK & Ireland’s fastest growing technology companies. The composition of the Fast 50 provides a snapshot of the current state of play in the technology sector.

Simon Kerton-Johnson, Chairman of Deloitte’s UK & Ireland Fast 50, comments: “The overall diversity of this year's Fast 50 reflects the continued health of the technology sector in the UK and Ireland. The combination of innovative new services and products with sustained growth in traditional areas of activity bodes well for the growth of technology-based companies well into the 21st Century. This year’s ranking also demonstrates the increased use of technology as an enabler of the business services market – such as HR – rather than as a stand alone product.”

The geographical distribution of Fast 50 companies remains fairly uniform across the six regions – with the exception of Ireland, which has an overall share of 26%. There have been some significant changes in the activities of Fast 50 companies since last year. Communications-related companies are well represented, making up 28% of the ranking - a significant change from last year when there was only 8%. This increase is the result of telecommunications companies exploiting ascendant technologies in mobile data network support services, and challenging well established sectors such as software and biotechnology.

Mobility and skills shine through

The two big success stories this year are in mobile communications and human resources related technology. Seven companies owe their record growth to activities related to mobile communications - either in the form of services or products. MX Telecom, overall Fast 50 winner, has grown on the back of increased use of mobile data services including short messaging service (SMS) and, more recently, multimedia messaging services (MMS). Mediaburst, northern region Fast 50 winner and sixth overall, has grown on a wave of the business use of SMS, which includes 'broadcast' messages to staff and customer promotions.

The surprisingly high number of HR-based companies in this year's Fast 50 (10%) could be a reflection of changing attitudes to staffing and the importance of attracting and retaining good people. The Fast 50 includes two skills training companies - Pulse Learning and Creating Careers - and two HR management software suppliers - Link HR and Jobpartners. This is an example of the increased use of technology as an enabler, in this case to address the HR needs of companies in a cost effective and efficient way.

Traditional software continues to grow

The strong presence of software companies in the ranking (24%) reflects a continuing demand for  traditional software, with several Fast 50 companies demonstrating that solid growth can still come from this sector. Exasoft, Midlands area winner and seventh overall, supplies specialist software for handling mortgage endowment compensation calculations and counts all of the major banks and building societies as its customers.

Hardware sector wanes

Hardware suppliers have not in general fared so well this year, representing just 6% of companies in the ranking compared to 14% last year. However bucking this trend is Comtec Enterprises, this year's south east region winner and fourth overall, which has moved from being a software and services supplier into the hardware business. Founded in 1994 as an IT consultancy it moved into hardware as a way to speed up growth.

Biotech cycle declines

The biggest fall has been in biotechnology - a sector which has performed well in the past. Only Nexus Oncology, the Scottish biotechnology and medical products company, made it into the Fast 50 this year. The reasons for the poor performance of the sector are not obvious. It could be that the long cycle of product development compared to other sectors and the tendency for successful biotechnology companies to be taken over has effected the sector this year.

"With the exception of biotechnology, the post 'dotcom' revival of the technology industries, which was evident in last year's Fast 50, has continued. The emergence of new companies creating a more diverse technology sector should provide strong foundations for the future of the UK and Irish economies," concludes Kerton-Johnson.

"The Technology Fast 50 ranking is proof that there is a growing appetite in the market for new services and innovative business models.  This is encouraging for the sector and those companies with ideas and ambition,"
Charles Ward, Chief Operating Officer, Intellect.

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Notes to editors

Fast 50 split according to region and category

About the Deloitte Technology Fast 50 Programme

To enter the Fast 50 Awards, companies must meet the criteria listed below:

• Have been in business for a minimum of five years;
• Considered a technology company, which is defined as
  • producing technology
  • manufacturing technology-related products
  • be technology intensive, or use unique technology to solve problems
  • devoting a high percentage of effort to technology R&D;
• The parent company must be UK-owned and have its headquarters in UK or Ireland (subsidiaries of multinational organisations do not qualify);
• Operating revenues must be at least £35,000 (50,000 Euros) for 2001 and £550,000 (800,000 Euros) in 2005.

About Deloitte

In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.  The information contained in this press release is correct at the time of going to press.

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.

The information contained in this press release is correct at the time of going to press.