Financial & Operational Highlights

Investors / Financial & Operational Highlights

Investor presentation recorded Dec 2020

Financial highlights

  • Revenue of £65.5m (2018: £66.4m for continuing business, restated for prior year adjustments).
  • Revenue visibility significantly improved, with annualised recurring revenue run rate at 31 October 2019 up 20% to £38.9m following adoption of IFRS 15 (16% organic).
  • Order book for contracted software and services up 29% to £12.1m.
  • Adjusted EBITDA*: £14.4m (2018: £13.6m, restated) for continuing business. Adjusted EBITDA* margin
    improved to 22% (2018: 20%, restated).
  • Cash conversion of Adjusted EBITDA* to net cash from operating activities improved to 86% (2018: 72%,
    restated). Free cashflow of £4.4m (2018: £4.2m inflow).
  • Adjusted EPS** for continuing operations 1.30p (2018: 2.23p, restated).
  • Net debt*** at 31 October 2019 down 17% at £26.4m (2018: £31.8m).
  • Post year end, new banking arrangements put in place for a £35m, three-year revolving credit facility.

* Adjusted EBITDA is defined as earnings before amortisation, depreciation, restructuring, acquisition costs, impairment, financing costs and share option costs. Share option costs are excluded from Adjusted EBITDA as this is a standard measure in the industry and how management and our shareholders track performance.

** Adjusted profit before tax and adjusted EPS excludes amortisation on acquired intangibles, restructuring, financing, impairment and acquisition costs.

*** Net debt is defined as cash less third party borrowings less long term bond.

Operational highlights

  • New Board, new senior management and finance teams, with improved accounting practices; enhanced employee, customer and shareholder engagement; full integration of prior period acquisitions; and improved governance throughout the organisation.
  • Disposed of our loss-making Digital business in November 2018 which was classed as discontinued operations in the prior year accounts.
  • Settled a number of operational legacy issues, including disposal of surplus offices, resolved all outstanding material litigation, resolved a number of customer disputes and initiated focus on recurring revenue, ceased
    loss-making or unsustainable products, and secured long-term supply arrangements with a number of key software partners.
  • Acquired Tascomi, a cloud-native supplier of solutions to our core Local Authority property and environmental services markets, in July 2019 to enhance the Group’s technological capabilities and market leading positions. The acquisition was funded by a £7.4m equity placing.
  • Established new sales and marketing methodologies to identify our strongest markets and align existing and
    new resources to maximise the growth opportunities we are presented with.
  • A continued focus on managing costs to drive increased profitability, and a focus on achieving positive trading terms with our partners to ensure a high level of cash conversion and generation from our operations.

Rule 26
Information last updated: 14 April 2020