Financial and Operational Highlights
- Four contracts successfully renewed in H1 bringing total bookings value for H1 to £2.8m
- Two new contracts won in H1 at a £0.5m booking value
- Gross margin increased to 55% (H1 2017: 52%)
- Recurring revenues at 74% (H1 2017: 74%)
- EBITDA loss of £0.424m (H1 2017 loss: £1.851m)
- 95% visibility of our 2018 revenues
- Recurring revenue expected to return to medium term target of 70% by year end
- Improvements in profitability and cash generation expected in remainder of 2018 and beyond
- FY2018 results expected to be in line with market expectations
Commentary from Ian Jenks, Chairman
“Forward momentum has been our watch word as we have successfully continued the re-organisation of the business. We are doing exactly what we said we would, including an investment in new products, the removal of costs, creating long-term solutions with the customer at the centre and a continual transition away from the Group’s legacy contract model.
This has put us on a strong footing reflected in the fact that we have also secured new contract wins and retained all business that came up for renewal during the period.
As such, we are confident that the business will scale efficiently and deliver significant improvements in profitability and cash generation in the remainder of 2018 and beyond. With 95% visibility of our 2018 revenues and a cost base that is now aligned with our strategic goals, we expect our full year results to be in line with market expectations.”