Go-ahead Guroo predict 200-fold rise in revenue

10/16/2008

by Chris Knox, The Journal

AN education company has won cash to develop its software which it believes will help it increase its revenues 200-fold in five years.

Sunderland-based Guroo has secured £440,000 from Newcastle venture capital firm NorthStar Equity Investors which it has used to double its workforce to six staff and expand its software range.

The firm, which only set up last year, believes it will be able to grow so quickly because it is one of the first companies to supply software as part of a new diploma which provides students with “real world skills”.

The first diplomas were introduced last month by UK schools and colleges and give students aged 14 to 19 the chance to study work-related courses in a number of sectors, including IT and construction. Guroo managing director Jonathan Wells believes the software, which provides 80 hours of online learning materials including lesson plans and podcasts, will become a hit in schools nationally and help him increase turnover from £50,000 to £1.2m by next year and £10m by 2013.

The entrepreneur recently used the NorthStar’s investment to add 30 hours of new material to his site, www.guroo.co.uk, and expects to double it to 160 hours in three years time.

He has also secured new clients, including a £3,500 deal with Red House Academy in Sunderland and an £8,000 agreement with West Herts College in Watford.

Wells expects the deals to continue in line with the take-up of the diploma, which is expected to grow from 20,000 schools and colleges currently involved to 2.5 million in 2012, and is looking to expand his workforce to 20 staff in order to keep pace.

He said: “I have no doubt about the success of the diplomas over the coming years and I’m making sure that we expand our offering to take advantage of this. We have doubled our team since the investment and I expect to be adding to this in the very near future.”

The entrepreneur is no stranger to the education sector, having spent 15 years as part of two multi-million-pound businesses in London.

He recently spent four years as sales and marketing director at Sam Learning in Camden, and helped the online business increase its turnover from £100,000 to £5m.

After cashing in his shares, he decided to set up Guroo in the North East after becoming tired of commuting to the capital from his home in Washington.

I have no doubt about the success of our diplomas ... and I’m making sure we expand.

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