ActiveOps plc (AIM: AOM), a leading provider of Management Process Automation (MPA) software for running complex and global back-offices, is pleased to announce its unaudited results for the financial year ended 31 March 2021.

Financial Highlights

• Annual recurring revenue “ARR”:  Up 7%, £18.3m (2020: £17.1m)
• Revenue: £20.4m (2019: £20.4m)
• Software and Subscription revenue: Up 10%, £17.8m (2020: £16.2m)
• Training & implementation “T&I” revenue: Down 38% £2.6m (2020: £4.2m)
• Gross margin: +8ppts 82% (2020: 74%)
• Adjusted EBITDA*: £0.4m (2020: £(1.0)m)
• Profit/(loss) before tax: Up 29% £(2.0)m (2020: £(2.9)m)
• Earnings per share on continuing operations: Up  13% (3.91)p (2020: (4.48)p)
• Profit from discontinued operations net of tax: Up 461%, £11.8m (2020: £2.1m)
• Statutory profit /(loss) for the year: £9.1m (2020: £(0.7)m)
• Net cash and cash equivalents: Up 305%, £16.6m (2020: £4.1m)

Highlights

• Strong ARR growth despite Covid-19 pandemic
• Net Revenue Retention at 104% on 31 March 2021 (110% 31 March 2020)
• 10% growth in Software and Subscription revenue
• Training & Implementation (T&I) revenues fell in first half as the uncertainty created by Covid-19 lockdowns delayed change programmes and implementations. T&I revenues recovered in the second half of the year
• Adjusted EBITDA moved to a profitable position of £0.4m (FY20 loss £1.0m) by management of cost base in line with revenue growth
• Successful sale of non-core assets from OpenConnect subsidiary (acquired in 2019) delivered £11.8m profit from the sale and discontinued operations
• Ended the year with a strong balance sheet with net cash of £16.6m** at 31 March 2021

* Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, share based payments and IPO costs.

** Includes £3.5m employment taxes due on share option exercise which were paid in April 2021.

Strategic and Operational Highlights:

• Added 11 new customers globally with wins in all key regions and targeted industries
• Added 6 new customers and delivered SaaS revenue growth of 48% in the important North American market
• Divested OpenConnect subsidiary, retaining strategically important WorkiQ software and US healthcare administration customer base
• Significant product innovation, including the complete re-platforming of core software, resulting in the launch of ControliQ and integration of WorkiQ to create our next generation platform, Workware+
• Launched OpsIndex -unique operations performance benchmarking service enabling customers to make comparisons between their own operations and those of their peers
• Responding to the Covid-19 pandemic, updated our Training and Implementation (T&I) approach to enable fully remote customer deployments with no reduction in benefits delivered
• Successful IPO on the London Stock Exchange in March 2021

Outlook:

• Trading in the first quarter of the year has progressed in line with Board expectations, demonstrating considerable improvements on Q1 FY21 when Covid-19 delayed implementations and sales
• The Group has secured two new-logo customers, expanded within 13 existing accounts and continued to progress its investment plans
• The Board is confident ActiveOps is well placed to deliver on its growth ambitions

Richard Jeffery, Chief Executive of ActiveOps, commented, “The year to March 2021 has been one of considerable achievement for ActiveOps. We added to our global customer list, completed a divestment of non-core products acquired through OpenConnect, deployed the next generation of our Workware+ platform and completed a successful IPO on AIM, all against the challenging backdrop of the pandemic. I join our Chairman and the rest of the management team in thanking all our team around the world for their support through what has been a tough year for so many.

“I am incredibly proud of everything the team has achieved to date, building a market-leading offering and long-term, blue-chip customer base with users in over 40 countries around the world. We are very much still at the start of our journey. Increasing regulation, automation and the changing dynamics of the workforce mean back-office operations are becoming ever more complex. We see a clear and growing need for our offering, which through the enhanced credibility and profile of our IPO we are well-placed to deliver.

Below is a short interview with CEO Richard Jeffery, who provides an outline of the business, the Group’s strategy and rationale for listing on AIM