ATTRAQT Group PLC Trading Update (7732U)
October 27 2017 - 2:00AM
UK Regulatory
TIDMATQT
RNS Number : 7732U
ATTRAQT Group PLC
27 October 2017
27 October 2017
ATTRAQT Group plc
("ATTRAQT", the "Group" or the "Company")
Trading Update
Following Eric Dodd's appointment as Finance Director on 1
September 2017, and at the Board's request, a detailed review of
the Company's forecasts has been undertaken. The review has
concluded that due to inaccuracies in forecasting the timing of
certain contracts and client "go-live" dates, it is necessary for
the Company to revise its full year outlook.
The Company now expects revenues for the full year to be circa
10% below previous expectations but still showing year on year high
single digit organic growth and to be EBITDA positive in the second
half of the year as well as being broadly breakeven for the year as
a whole. The lower revenue run rate at the end of 2017 will carry
forward into 2018.
The delay in pipeline conversion is due to a number of
significant new contracts closing but later than planned, and some
other contract decisions being delayed. Inaccuracies in estimating
the period between engagement and the "go-live" dates have also
been identified by the review.
The Company's sales pipeline remains strong, with the Company
continuing to win new client logos and sell upgrades to its
existing clients. The management is confident that the forecasting
around the timing of contract wins has now been resolved.
The Company also has a strong order book of GBP2m Annualised
Contract Value and the management is working on a plan to resolve
delayed "go-live" dates.
The Company is working on the expectation that a significant
proportion of the attrition risk relating to clients re-platforming
(as discussed at the time of the interim results), will crystallise
early in 2018. The mitigating actions outlined in the interim
statement, including the hiring of additional account management
resource, will continue to be implemented.
At 30 September 2017 the Company had cash of GBP2.3m.
For further information, please contact:
ATTRAQT Group plc via Alma PR
André Brown, Group CEO
Eric Dodd, CFO
Gemma Williams (née Owen-Smith), Head of Marketing and Communications
N+1 Singer Tel: 020 7496 3000
Shaun Dobson, Lauren Kettle
Alma PR Tel: 020 3865 9667
Rebecca Sanders-Hewett, Susie Hudson
About ATTRAQT
ATTRAQT Group plc specialises in onsite search, online
merchandising and eCommerce personalisation with two product
offerings: Freestyle Merchandising and Fredhopper. The Group's
customer base is made up of over 230 client logos ranging from SMEs
to global, blue-chip businesses. ATTRAQT has a strong base in the
UK and western Europe, with a presence in North America, eastern
Europe and ANZ. For more information, please visit:
www.attraqt.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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