Gloster Founder Hails ‘Milestone’ Year for IT Firm

Despite challenging macroeconomic conditions, Gloster’s revenue reached a record HUF 6.349 billion in 2022, driven by a 78% growth in international, euro-based revenue. As a result, this segment now constitutes nearly one-third of the company’s total revenue. Its continuous performance contracts also showed a 54% increase in regular income compared to 2021, indicating a positive trajectory amid current macroeconomic challenges.

Commenting on the company’s achievements in 2022, Gloster’s founder and chairman Viktor Szekeres told a press conference, “This year was a milestone for Gloster Group, as our international growth laid a crucial cornerstone for our 2025 growth strategy.”

He added that the company is financially stable and continues to actively search for acquisition targets that could further strengthen its profitability and international presence.

Szekeres also highlighted Gloster’s plans to move into the Budapest Stock Exchange’s Standard category, reflecting the company’s ambition to enhance its visibility, market position, and investor confidence.

As part of this transition, Gloster must meet requirements such as increased transparency, improved corporate governance, and a more diversified shareholder structure. This move will also provide the company a platform to attract additional investment for future growth and acquisitions.

Driving Force

In 2022, Gloster’s international software development business was the driving force behind the firm’s growth, contributing 37.8% of total revenue and becoming the most significant division within the group.

That success was built upon three acquisitions completed last year. Among these, the purchase of a 51% stake in the Germany-based G-Plus Consulting GmbH marked a milestone in the company’s operations, providing Gloster with direct access to the German market and enabling it to become an IT supplier for major German car manufacturers without intermediaries.

Revenue for the international software development division increased by 113% year-on-year, making it the most significant contributor to Gloster’s bottom line. These results align with the firm’s vision of creating a world-class IT ecosystem to satisfy the demands of IT service providers in the international market, particularly in the German-speaking DACH (Germany, Austria and Switzerland) region, relying on the expertise of local engineers.

Strategic acquisitions in 2022 also included two Hungary-based companies with an international market presence. In May, Gloster acquired a 54% stake in fintech design and development company ff.next. The latter firm has designed and implemented design-driven digital financial solutions for more than 10 financial institutions and 20 fintech companies, ranging from Singapore and the DACH region to Australia, the Middle East, and the United Kingdom.

Gloster also acquired a 60% stake in the Pécs-based Lanoga Kft., which operates in both the Hungarian and European private healthcare IT markets, in December 2022. This purchase broadened Gloster’s portfolio with a new market perspective and further solidified its international presence.

Thanks to a combination of acquisitions and organic growth, the workforce increased by 56%, reaching 202 employees by the end of 2022. The company now has offices in five Hungarian cities, including Budapest, Szeged, Kecskemét, Pécs, and Nagytarcsa.

The international software development division stands out in this regard, accounting for more than 60% of the company’s total workforce.

2023: Further Expansion

This year’s focus remains on further expanding its international presence, primarily in the DACH region, and continuing its growth trajectory in the software development sector. Gloster says it plans to leverage its recent acquisitions and existing partnerships to secure more significant contracts with major European and international clients.

Moreover, the firm says it will enhance its expertise in emerging technologies such as artificial intelligence, machine learning, and blockchain, enabling it to stay at the forefront of industry trends and provide cutting-edge solutions to its clients.

Another priority in 2023 is nurturing and retaining its highly skilled workforce, which is critical to the company’s success. Gloster will continue to invest in employee training and development programs, creating a “dynamic work environment that fosters innovation and collaboration.”

The firm argues its success in the international market not only benefits the company but also has a positive impact on the Hungarian IT landscape. By creating job opportunities, fostering innovation, and enhancing the country’s reputation as a technology hub, Gloster says it contributes to the growth and development of the local IT industry.

The listed firm’s commitment to providing world-class IT solutions and its ambitious growth strategy has positioned the company as a prominent player in the global IT market, Szekeres says. With its record-breaking performance in 2022 and its focus on continued expansion, Gloster believes it is well on its way to achieving its vision of becoming a leading IT service provider in the international market.

This article was first published in the Budapest Business Journal print issue of May 5, 2023.