Sopheon PLC Trading Update (3317O)
January 29 2019 - 2:00AM
UK Regulatory
TIDMSPE
RNS Number : 3317O
Sopheon PLC
29 January 2019
SOPHEON PLC
("Sopheon", the "Company" or the "Group")
TRADING UPDATE
Sopheon plc, the international provider of software, expertise,
and best practices for Enterprise Innovation Performance, is
pleased to provide a further update on the Group's performance for
the year ended 31 December 2018.
In our trading update of 11 January 2019, we reported continued
commercial delivery through the end of the year on the back of a
record third quarter performance for the Company. The Board now
expects that reported revenues for the year ended 31 December 2018
will be in excess of $33m, up from $28.5m in 2017. With higher
revenue as well as lower than planned costs, the Board expects that
EBITDA and pre-tax profits will be significantly ahead of the
upgraded market expectations for the year ended 31 December 2018.
The year-end net cash position is expected to be $16.7m (2017:
$9.5m) demonstrating the cash generative nature of the
business.
During 2018 we recorded 18 new customer wins compared to 13 the
year before, of which several were substantial in size. Five of the
new wins were for software as a service ("SaaS") contracts. The
recurring revenue base has risen to $14.7m coming into 2019,
compared to $12m the year before. This, together with contracted
services revenue, leads to overall revenue visibility* of $19.4m
for 2019 compared to $18m last year. Looking ahead, we have a very
strong pipeline and solid commercial profile in both our home USA
and EU territories; coupled with rising interest from Asia through
partnership activity.
We have continued to deliver on our stated strategies, winning
new enterprise customers with vertical industry specialization;
embedding Accolade in our blue-chip customer base as a platform of
choice for applications beyond innovation; and expanding commercial
reach through partnerships. Recruitment continued to be a challenge
last year, with a tight market in particular for US software
engineers, contributing to the cost saving. We have modified our
recruitment practices in this area and are now seeing rising
traction with bringing on new skilled people. Our plans for 2019
call for a number of new hires, to deliver on our planned
investments, and further solidify Sopheon's leading position in our
chosen market - as we drive for a fifth consecutive year of
financial and strategic growth.
Financial expectations noted above are subject to the completion
of year-end financial close and audit processes. Sopheon intends to
issue its results for the year ended 31 December 2018, on 21 March
2019.
For further information contact:
Barry Mence (Chairman) + 44 (0) 1276 919
Arif Karimjee (CFO) Sopheon plc 560
Carl Holmes / Giles Rolls (Corporate
Finance)
Alice Lane / Sunila de Silva + 44 (0) 20 7220
(ECM) finnCap Ltd 0500
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.
(1) Revenue visibility is defined on page 6 of Sopheon's 2017
annual report which is available from the investor section of
www.sopheon.com.
(2) Market expectations mean the current forecasts from analysts
that cover Sopheon, being at this time finnCap and Progressive.
Links to these forecasts are available in the investor section of
www.sopheon.com.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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