Plexure surpasses market guidance

09/3/2021, 9:50 am MKTUPDTE
As part of its capital raise and secondary listing on the ASX, Plexure Group Limited (Plexure) provided the market with financial guidance on 11 November 2020.

Plexure now expects to surpass that guidance based on its unaudited forecast:

– Total revenue for the year ended 31 March 2021 is expected to be $29.2m, $0.2m (1%) above the November 2020 ASX forecast of $29.0m and $4.0m, or 15.8%, ahead of the March 2020 result, subject to any major movements in the New Zealand dollar.
– Costs incurred since the November 2020 forecast have been lower than anticipated, principally due to a slower ramp-up in headcount numbers.
– Forecast EBITDA loss of $5.6m is 20%, or $1.4m, less than originally forecast.

Revenue from licences is expected to be 4%, or $0.7m, below the original forecast, however this has been offset by an increase in services revenue of 9%, or $0.9m. The net result being that total revenue of $29.2m is 1%, or $0.2m, above the original ASX forecast.
Platform costs are 4%, or $0.4m, above the ASX forecast. The ASX forecast also included a positive impact of $0.2m from a lease change that has not eventuated. Other expenses that have been lower than anticipated include business development costs, office expenses and general expenses. ASX listing costs were also higher than originally forecast.

Employment and contractor expenses are 5%, or $1 m, below the ASX forecast number. This is reflected in staff numbers which are forecasted to be 153 at year-end as opposed to the 190 included in the ASX forecast. The original forecast was based on the ASX listing and funds raised being completed in November 2020 with recruitment starting in January 2021 and staff coming on board in March 2021.

Overall, the impact of slightly increased revenue, offset by lower expenditure has meant that the the forecast EBITDA loss of $5.6 m is 20%, or $1.4m, less than originally forecast.

Note that all numbers provided for the year ended 31 March 2021 are unaudited.

Impact of COVID-19

The majority of countries which Plexure operates in are still impacted by COVID-19. Overall, Plexure is seeing less redemption activity, and this is reflected in licence revenue being $0.7m behind the ASX forecast. However, due to the current use of a store based revenue model, the Company has largely been shielded from the reduction in activity.

Another side effect of COVID-19 has been the tightening of the labour market in New Zealand, specifically in the technology sector. The increasing demand for technology staff along with closed borders has had an impact on Plexure’s ability to hire the staff that it requires. This is an emerging risk and Plexure is now utilising a number of different strategies to increase its recruitment of staff.

For more information please contact:
Andrew Dalziel, CFO Plexure
Mobile: +64 27 6777 575
Email: [email protected]