Steve Jude Anticipates Significant Role for Citibase in Sector Consolidation

ALLIANCE Business Centers NETWORK (ABCN) Member Citibase was featured in the October 2009 edition of Growth Company Investor. Managing Director Steve Jude was interviewed for the piece, which reported that he is celebrating record profits as well as his success in recruiting Jon Addis as the executive suites company’s Finance Director. Jon Addis is a private equity, property and tax acquisition specialist who has worked with RBS and Lloyds TSB.

The article reports that Citibase’s pre-tax profits rose 61% to £1 million in the year to February, on buoyant turnover of £10.25 million, but that Steve has shelved plans to float the company on the Alternative Investment Market (AIM) for now, after a £500,000 fundraising at 80p.

Steve said, “Our offer was pretty well received and we got the money committed. But we did not get the valuation we wanted, so we decided to wait.”

He explained how Citibase only got the value of their cash, and went on to share that the cash was nearly £4 million at the financial year-end, but that he is confident Citibase will still be able to play a significant role in the sector consolidation, in which he anticipates growth. He is even more optimistic now with Addis on board, as Addis is primed to help Steve expand Citibase even further.

Citibase reports that they opened 14 new centers in the first half of 2009. The company went public earlier this year as part of a plan to triple their business within three years’ time by listing themselves with AIM, allowing them to offer shares to vendors.

Regarding Citibase’s listing with AIM, Steve said, “We’ll return to float when the time is right.”

The right time is sure to come soon, as executive suites and virtual office companies around the world report a steady climb in enquiries and occupancies, particularly in the London market.

“I agree that consolidation is around the corner,” ABCN Chairman Frank Cottle said. “Those who are prepared – as Citibase and other ALLIANCE Members are – will emerge strongly from our current economy.”

Add to: del.icio.us | Digg