Interim Results for the six months ended 30 September 2022

ActiveOps plc (AIM: AOM), a leading provider of Management Process Automation (MPA) software for running hybrid and global back-office operations, is pleased to announce its unaudited results for the six months ended 30 September 2022.

Financial Highlights:

Six months ended 30 September

• Annual recurring revenue “ARR”*: +12% to £22.1m (H1 FY22: £19.8m)
• Total Revenue: +7% to £12.3m (H1 FY22: £11.5m)
• Software & Subscription revenue: +14% to £10.9m (H1 FY22: ££9.6m)
• Training & Implementation “T&I” revenue: -26% to £1.4m (H1 FY22:£1.9m)
• Gross margin: up 1pt to 81%
• Adjusted EBITDA**:  £0.3m (H1 FY22: -£0.2m)
• Profit/loss before tax: +50% to -£0.5m (H1 FY22: -£1.0)
• Earnings per share on continuing operations: +29% to -0.99p (H1 FY22: -1.40p)
• Net cash and cash equivalents: +1% to £11.0m (H1 FY22: £10.9m)

 

• ARR* growth of 12%, or 7% at constant currency
• Net Revenue Retention at 109% on an annualised basis, following multiple customer expansion deals and improved customer retention rates
• Software & Subscription revenue up 14% year-on-year, T&I revenue down slightly in absolute terms, reflecting the timing of contracts, with the Board confident this revenue will be in line with prior periods for the year
• Gross margins remain strong at 81%, supported by the ongoing efficiency of the remote delivery model
• Adjusted EBITDA positive, reflecting a mix of careful cost control, timing of investment and favourable currency conditions
• Cash conversion negative in the period due to seasonality of renewals cycle. Expected to move to a positive position before year end with significant renewals in H2
• Balance sheet remains debt free with £11.0m cash in the bank (H1 FY22: £10.9m), increasing to £13.0m at 28 November 2022

Operational Highlights

• Added three new customers and signed twelve significant expansion deals, with nine out of ten of the Group’s top ten accounts expanding usage of ActiveOps products
• Launch and first contract win for new CaseworkiQ offering, worth £0.6m in incremental Annual Recurring Revenue. Established a solid pipeline of CaseworkiQ opportunities within the existing customer base
• Newly established data science function continues to deliver against its ambitious AI/Machine Learning product roadmap with new product capabilities to be released by the end of the financial year

Outlook

• Trading in the second half has begun well keeping the Company firmly on target to be run-rate EBITDA positive at the end of this financial year
• With a number of contract wins and expansion deals on the horizon and an expanding product offering the Board looks to the future with confidence

Footnote to Financial highlights

The above non-GAAP measures are unaudited

*Annual Recurring Revenue – unaudited

**Adjusted EBITDA is used by management to assess the trading performance of the business. Defined as Operating profit before depreciation, amortisation, share-based payment charges and exceptional items and includes FX differences.

Richard Jeffery, Chief Executive Officer of ActiveOps plc, commented:

“The first half of FY23 has seen the Group continue to perform well, securing new customer wins and substantial expansion deals, resulting in strong growth in SaaS revenues.

“Based on our historical performance in challenging times, the proven track record of our offering, its ability to find hidden capacity and optimise costs, we firmly believe our solutions will play an integral role in helping new and existing customers deal with the challenges posed by a recession.”

“Our high levels of recurring revenue and a robust balance sheet mean we are well placed to mitigate potential economic headwinds while continuing to invest in the business and execute our growth plans. With a number of contract wins and expansion deals on the horizon as planned, and an expanding product offering, we look to the future with confidence.”

News in full

Below is a short interview with CEO Richard Jeffery, who provides an outline of the business, the Group’s strategy with the business listing on AIM in early 2021