THE co-founder of Sage has given his strongest hint yet that his latest IT venture will follow the software group to the stock exchange.

Graham Wylie launched Technology Services Group (TSG) less than two years ago, after he retired from Sage in 2003.

He has since invested an estimated £25m in the Newcastle-based business, which he plans to grow into a national brand.

"We do want all the employees to feel that they have a share in the business and can reap the rewards of its success," he said.

"A flotation is one way of doing that.

"We are still very cash rich, so there is no need to go to the City right now. But you never know in the future. I am a fan of flotation. I have to be, because of what happened to Sage and how it grew."

Accountancy software maker Sage, established in 1981, never looked back after floating four years later and is the only technology stock in the FTSE 100.

It employs 8,000 people worldwide, including 1,200 people at its head office in Newcastle Great Park.

TSG, based nearby in Gosforth Business Park, is a business software retailer planning to become a one-stop-shop for IT support services.

It was established in October 2003, when Mr Wylie bought out a family IT services company, Joynson's, in Gateshead.

Peter Joynson stayed with the business and now leads TSG's North-East division, based in the Team Valley.

That has since grown to employ 100 staff and turnover has doubled to £9m.

Mr Joynson plans to double this again and take on 100 more staff.

"Gateshead is the model for TSG," said Mr Wylie. "Peter is about half-way there."

TSG has five divisions across the North and in Scotland. It employs about 450 staff and last year had a turnover of £36m.

Mr Wylie, who also owns a string of successful racehorses, originally aimed to treble this by 2007. But the success of the North-East operation has led him to double this forecast in the longer term, predicting turnover could eventually reach £200m.

"We have ambitious plans for TSG and there is no reason why we cannot grow it into a much bigger business," he said.

"There is plenty of business in the North to see out our current growth plan. Once we have got the northern regions working right, we will move further south."

The group recently raised a £25m debt facility with Lloyds TSB, with an eye on the Midlands as its next area for expansion.

Mr Wylie said: "We have bought a business in the Midlands which is the hub there, but we haven't bought any businesses around that yet."

He has so far bought about a dozen IT services companies. Last week, the group made its second purchase since raising the credit facility, buying Edinburgh Microsystems Centre for an undisclosed sum.

Its managing director and six staff will transfer to TSG Scotland's Edinburgh office.

The acquisition brings TSG's total workforce to more than 425, with an annualised turnover of more than £37m from more than 9,000 customers.

The company has also been named software partner of the year by business software producer Pegasus.