Sopheon PLC AGM Statement (4739H)
June 08 2017 - 2:00AM
UK Regulatory
TIDMSPE
RNS Number : 4739H
Sopheon PLC
08 June 2017
SOPHEON PLC
("Sopheon" or the "Company")
AGM Statement
At today's Annual General Meeting of Sopheon, the international
provider of software and services that help organizations generate
more revenues and profits from new products, the Board will give
shareholders an update and review of the business.
It gives us great pleasure to report another year of excellent
financial and operational progress, as we continue to advance our
strategy of being the world's leading solution provider of
enterprise-class innovation management software solutions. A year
ago we were pleased to report solid strategic and financial
progress, and we are delighted to say the same applies today, one
year later. Last year we grew revenues to $23.2m from $20.9m in
2015 and $18.3m in 2014, and we delivered another substantial
increase in profitability, with EBITDA rising to $5.2m before
exchange gains ($5.6m including exchange gains) from $4.1m the year
before, which was itself more than triple the 2014 performance.
Profit before tax rose to $3.0m from $1.2m in 2015. In 2016 we also
initiated partial recognition of our substantial deferred tax
asset, which resulted in a profit after tax of $4.3m. Net assets
nearly doubled to $10.4m from $5.5m in 2015.
The revenue growth was underpinned by a rise to 49 license
transactions from 42 the year before, of which 17 were new
customers, up from 14 in 2015. We continued to invest in and show
traction with the two elements of our go-to-market strategy - both
the global end-to-end enterprise solution, and the "out-of-the-box"
Accolade Express solution for quicker time to value. Our market
strength in the consumer products industry was again recognized,
with Sopheon being voted a "top ten software vendor" for the
seventh consecutive year by the CGT magazine readership. In
addition to this progress, we also saw strong traction in the
aerospace and defense and chemicals sectors. Sopheon's commercial
success is being achieved in parallel with strategic and
operational initiatives aimed at underpinning our continued growth
for the next three to five years. We maintained our rapid pace of
product development releases, with another three in 2016, further
advancing our platform for enterprise utilization and flexibility,
followed by version 11.1 which we released in February this
year.
This continued investment supports our growth strategy in two
areas. One is to capitalize on existing client demand to expand
their Accolade investment beyond product innovation to support
Enterprise Initiative Management tracking and decision making. This
market opportunity has been validated by Gartner's 2016 Market
Guide for Strategy Execution Software and their recognition of
Sopheon in this emerging space. We are also delighted to announce
Sopheon's inclusion in Gartner's Magic Quadrant for Project
Portfolio Management, just last week. Sopheon is the only vendor
referenced in both the Market Guide for Strategy Execution Software
and the Magic Quadrant for Project Portfolio Management. In
Sopheon's view, this provides strong validation of our unique
position and strength in the enterprise portfolio management,
enterprise initiative management, and product development markets.
The second growth area we continue to invest in is our vertical
industry focus on chemical, consumer goods, food and beverage,
aerospace and defense, and high-tech. In addition, we are
researching the insurance, service and automobile industries as we
have recently signed customers in these areas. Such customers help
us to understand the value proposition Accolade can bring to new
vertical markets, and to determine if these represent further new
growth opportunities for the Company.
Following several years of clarifying our debt, equity and
listing structure, our corporate activity has been relatively quiet
in the past year, other than extension of the maturity of our debt
facilities to January 2019.
Sopheon has a market-leading solution, global reach, solid
financials, a clear corporate structure, an accelerating market,
and most importantly great people - a real platform for growth.
Full year revenue visibility for 2017 from contracted business and
recurring revenue streams is now at $17.5m, compared to just under
$17.0m at this time last year. This includes 20 license orders, up
from 14 for the same period last year. This is a different mix
compared to this time last year, which included a very substantial
order from an existing enterprise tier customer. This is further
evidence of the increased adoption of the Company's software and
services from a broader range of businesses, including several with
expected upside revenue later this year. Sopheon also continues its
focus on working with and growing relationships with global blue
chip customers such as Electrolux, PepsiCo, Proctor & Gamble
and Merck. These factors, together with a strong sales pipeline,
give the Board confidence in meeting our strategic and financial
plans for the year, and in delivering continued positive
development in our performance for 2017 and beyond.
For further information contact:
+ 44 (0)
Barry Mence, Chairman 1276 919
Arif Karimjee, CFO Sopheon plc 560
Carl Holmes/Giles Rolls
(corporate finance)
Mia Gardener (corporate + 44 (0)
broking) finnCap 20 7220 0500
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
About Sopheon. Sopheon (LSE: SPE) partners with customers to
provide complete enterprise innovation management solutions
including software, expertise, and best practices, that enable them
to achieve exceptional long-term revenue growth and profitability.
Sopheon's Accolade solution provides unique, fully-integrated
coverage for the entire innovation management and new product
development lifecycle, including strategic innovation planning,
roadmapping, idea and concept development, process and project
management, portfolio management and resource planning. Sopheon's
solutions have been implemented by over 200 customers with over
60,000 users in over 50 countries. Sopheon is listed on AIM,
operated by the London Stock Exchange. For more information, please
visit www.sopheon.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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