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Financial Highlights

  • Consolidated revenue:
    • for the continuing business, excluding our Digital business disposed of on 2 November 2018, of £67.4m (2017: £73.8m restated see note 1); and
    • for all Group operations, including our disposed Digital Business, of £73.7m (2017: £85.9m restated)
  • Adjusted EBITDA*:
    • for the continuing business, excluding our Digital business, of £14.4m (2017: £16.5m restated); and
    • for all Group operations, including our disposed Digital Business, of £11.6m (2017: £15.7m restated).
  • Net debt position at 31 October 2018 of £31.8m (2017: £32.6m) comprising cash of £5.5m, third party borrowings of £25.8m and long term 2025 bond of £11.5m (2017: cash of £3.2m, third party borrowings of £24.6m and long term, 2025 bond of £11.2m)
  • Adjusted profit before tax** £7.9m (2017: £10.3m).
  • Adjusted EPS** for the continuing business, excluding our Digital Business 2.28p (2017: 2.18p).
  • Adjusted EPS** for all Group operating, including our disposed Digital 1.72p (2017: 1.97p)
  • No proposed dividend (2017: 1.040p) as the business transitions to a more stable platform.
  • Post year end, banking arrangements extended to February 2020.

* Adjusted EBITDA is defined as earnings before amortisation, depreciation, restructuring, acquisition costs, impairment, corporate finance 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, impairment and acquisition costs.

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Operational Highlights

  • Ongoing review and transition to fully integrate prior year acquisitions and refocus operations on our core profitable and cash generative activities to maximise shareholder value.
  • Appointment of new leadership team to drive value in the business with the appointment of Chris Stone as Non-Executive Chairman, David Meaden as Chief Executive Officer and Rob Grubb as Chief Financial Officer.
  • Strategic focus on, and continued investment in Public Sector Software (PSS) which represented 47% of total Group Revenues and 84% of Adjusted EBITDA* in FY2018, including discontinued operations. Disposal of Digital business, cementing focus on software and related services for the Group.
  • Review of revenue recognition policies (including adoption of IFRS 15) and practices with a focus on sustaining and improving levels of recurring revenues and visibility of revenues more generally:
    • Exit annualised recurring revenue run rate as at 31 October 2018 was £32.4m (as at 31 October 2017: £33.4m restated).
    • Our contracted order book for software and services has more than doubled to £9.4m at 31 October 2018 (2017: approximately £4.0m), an increase of £5.4m reflecting revenue recognition commensurate with our performance obligations.
  • Improved cash conversion from realisation of prior period debtor and accrued income balances, and better cash terms for new deals signed.
  • A continued focus on reducing costs as the Group adjusts its cost base to align more directly with its re-focused business model to drive increased profitability. This trend is expected to continue through FY2019 and beyond.

Rule 26
Information last updated: 11 March 2019

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