Full Year Trading Update

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 year ended 31 March 2023.

• ARR growth of 13% (11% constant currency) above prior year to £22.6m
• Total Revenue growth of 11% driven primarily by increased recurring SaaS revenues to £25.5m
• Gross Margins remain healthy at 82%, (2022: 81%) supported by improved T&I margins
• Adjusted EBITDA moves to profitability at £0.7m (2022 Loss: £0.3m), ahead of management expectations, reflecting operational leverage in the business and forex gain of £0.7m (FY22: £0.3m)
• Strong EBITDA cash conversion of 505% (2022: 673%) arising from annual-in-advance billing
• Balance sheet remains strong with £15.4m cash (2022: £13.8m) being approximately 26% of the Company’s current market capitalisation and no debt

Operational Highlights

• Significant expansion of existing customer relationships resulting in Net Revenue Retention (NRR) of 110% (2022: 102%)
• 20% increase in ARR from the ten largest customers. 60% of customers globally increased ARR, including 28% who increased ARR by 20% or more
• Added new customers in each of our three regional business units
• Double digit SaaS revenue growth in each of our regional business units
• New CaseworkiQ product, launched in June 2022, in use by 7 of the 10 largest existing customers, proving its ability to create new opportunities with existing customers
• First enterprise customer using all three ActiveOps software products (ControliQ, WorkiQ and CaseworkiQ), demonstrating considerable up-sell opportunities within the existing customer base
• Currently developing a series of major software enhancements for release in the current financial year utilising Artificial Intelligence (AI) and Machine Learning (ML) to provide customers with new opportunities to optimise operational performance

Outlook

• Trading in the first few months of the year in line with Board expectations, driven by customer expansions and addition of two new customers with significant expansion potential.
• Continued healthy sales pipeline and positive outlook.

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