Plexure Group Limited 2016/17 Interim Results Announcement
9:55am, 29 Nov 2016 | HALFYR
29 November 2016
Please find Plexure Group Limited Appendix 1 announcement and 2016 / 2017 Interim Report attached to this announcement.
For the six months ended 30 September 2016, total revenue grew 9% over the same period last year, to $3,602k. During the same period operating revenue grew 32% to $3,348k reflecting the growth in the underlying business. Annualised Committed Monthly Revenue (ACMR – recurring revenue) grew to $6,004k, an increase of 25% over the same period in 2015. ACMR is a key performance metric for Software as a Service (SaaS) businesses.
The net loss for the six months ended 30 September 2016 was $3,653k, up 15% from the same period last year. This loss reflects the investment the Company is making establishing a presence in the US market and the continuing development of its technology platform.
Growth during this period was slower than anticipated. Changes in the US sales team slowed progress, however, towards the end of the period, momentum started to pick up with the addition of McDonald’s Canada, the signing of a new South American customer and expansion of the Compass Group relationship; all occurring in the final 2 months of this period.
While we continue to sign new customers, we are also experiencing increased demand from existing customers to provide additional services and, as we respond to those requests, our relationship with those customers is deepening.
We have also started to field more enquiries from manufacturers of hardware who are looking for solutions that allow them to provide further functionality to consumers of their products. This is an exciting development and will broaden the Company’s addressable target market and increase revenues without incurring large cost increases.
The Company’s technology platform is performing well at scale, now supporting in excess of 50 million users, and continues to be lauded as market leading, particularly as its data analytics capability grows. It is now being used in a number of different application areas and with the growing interest in the IoT, the scope for the platform to drive innovation within Plexure’s existing and prospective customer base is significant.
Capital and Capital Markets
During the 6 months ended 30 September 2016, the Company raised $3.4m of new capital via a private placement. We were pleased to have VIX Investments increase its stake in the Company to approximately 10% through their participation in this placement. VIX is a specialist Fintech investor based in Australia and manages a global portfolio of investments.
We are continuing to engage in discussions with prospective US-based strategic investors. We have now appointed a US based external advisor, who is undertaking a process to identify and evaluate appropriate potential US investors, and will assist Plexure to consider its strategic options and the potential transactions that may be available to it. This process will be broad ranging, and the Company may discuss, and potentially pursue, investment proposals that extend beyond issuance of new capital, including strategic alliances or the acquisition of all or part of Plexure’s existing share capital.
Plexure continues to attract significant international attention for its end-to-end personalisation and data analytics platform. Its IoT capability is a major point of differentiation from competitors and this capability is now driving interest in the Company from new market players.
The platform is now processing massive numbers of transactions across several geographies; we have a strong partnership with Microsoft and a new relationship with GE that looks very promising. Our revenues from existing customers are growing as they extend the use of our products and services and new customers are being secured.
Thus, the Directors remain confident about the future prospects for the Company but note that the pursuit of large enterprise customers in international markets takes time.
For more information please contact:
Andrew Dalziel, CFO Plexure
Mobile: +64 27 6777 575 Email: [email protected]