House of Control has tripled the worth of its customer portfolio in the last three years. Sales have doubled from 2017 to 2018.This growth is to continue in 2019 when the company will go from 60 to 90 employees.
In 2015, the Norwegian private equity firm Viking Venture bought about half of the House of Control. In three years, Viking Venture, its founder and its employees have considerably increased the rate of organic growth.
Up to now, the SaaS solution (Software as a Service) Complete Control has been the most important product. Complete Control enables customers to register all their ongoing liabilities and income for optimum portfolio management, with better overview and control.
Complete Control has really filled a hole in the market: House of Control have quietly built up an extensive portfolio of customers – while simultaneously tripling their subscription portfolio since 2015.
Growth which exceeds the owners’ expectations
This has made the company a growth machine for Viking Venture, which owns 52 per cent of it. At the close of 2018, the company’s fixed and ongoing subscription income exceeds NOK 80 million per year, and this is estimated to increase to NOK 100 million per year in early 2019.
Chairman and Partner in Viking Venture Erik Hagen is extremely satisfied with this development:
“We conducted a thorough analysis of the people, technology and market when we closed the deal in 2015. Even though we were convinced that we were buying a promising company, I must admit that House of Control has continued to impress us and achieved a growth far beyond what we could expect. The impressive 116 per cent growth in new sales in 2018 so far and last year’s 50 per cent portfolio growth says it all. House of Control has products that all organisations need, and therefore I believe that it will become a very powerful company,” he says.
Continued significant growth
The 13 staff working at the company in 2015 have now grown to be 60. The company has built a scalable organisation with streamlined roles in the Nordic region that now enable us to aim further towards our next goal.
The ambitions for further growth have increased in line with a steadily stronger impact on existing markets:
“We are positioned for further strong, organic growth, as well as acquisitions in new markets in the future. In 2019, we will increase our staff by 50 per cent,” says founder and CEO Lasse Sten.
Travelling in the same direction: 37 of 60 employees are shareholders
Growth is also a result of implementing internal measures in the House of Control, Sten reports.
“The growth has enabled us to fill and simultaneously cultivate more roles, especially within the areas of booking, sales, implementation and support. In addition, we have invited staff to the owner side: Two out of three staff are shareholders, which strongly contributes to our ability to move in the same direction and take the right actions on many levels in the company.”
New IFRS 16 reporting requirements driving further growth
In addition to new markets, House of Control has already experienced that there is a significant growth potential in helping both listed companies and companies with foreign parent companies with their calculations and reports on IFRS 16. This is a new regulation that comes into effect in the new year and requires for tenancy and other leasing agreements to be listed as assets and liabilities in the balance sheet.
“While many CFOs and accounting departments regard IFRS 16 as a strain, this has opened new and considerable opportunities to us. We have developed a unique IFRS 16 solution that we can now seamlessly integrate in our Complete Control solution. We save companies a lot of repetitive work, while ensuring their estimates are precise,” says Sten.