Software rental allows Vecta to build £14m business
in 6 years
15.04.2002 - CCL Press Release

Next month, software solutions provider, Vecta Software Corporation plc, will float on the AIM market, to allow the business to realise the next phase in its ambitious growth plan. In just six years, the company has achieved a turnover of £3.4 million and last year reported pre-tax profits of £190 000.

This success is due in large part to its unusual business model, pioneered in partnership with CCL. At the outset, Vecta worked with CCL to develop a way that customers could benefit from using Vecta software without having to buy it outright for a large one-off fee. Instead, customers rent the software for a monthly fee, calculated on a per-user basis.

Vecta specialises in Sales Information (SI) software, which allows companies with high numbers of products, and/or high numbers of customers to increase sales revenue. Customers include Smith & Nephew, Mitsubishi, Pilot Pens and engineering company, TWR-Lucas.

The software rental solution allows Vecta's customers to benefit from a scaleable solution that aligns expansion with results. It also means that the relationship is ongoing which empowers the customer to continually evolve and refine their solution in partnership with Vecta.

For Vecta, one of the great benefits of the rental approach is that it is much easier for customers to buy than a traditional software package. Furthermore, with CCL's unique Rental Exchange finance solution in place, Vecta can keep up-selling to its customers, on a simple and straightforward basis that aligns investment with return.

Vecta Software Corporation is set for an AIM flotation in May 2002 to raise £3.5 million, giving it a market value of between £12 million and £14 million. The AIM money will be invested in growing the business even further, taking it into new industry sectors and driving international expansion.