TIDMGETB
RNS Number : 2435S
GetBusy PLC
13 July 2022
13 July 2022
GetBusy plc
2022 Half-year Results
Acceleration of predictable, scalable and valuable ARR
Further upgrade to 2022 revenue expectations
GetBusy plc ("GetBusy", the "Company" or the "Group") (AIM:
GETB), a leading provider of productivity software for professional
and financial services, announces its unaudited results for the six
months ended 30 June 2022 (the "Period", "H1" or "H1 2022").
H1 2022 H1 2021 Change
GBP'000 GBP'000 Reported currency Constant currency(+)
------------------
Group ARR 18,068 14,049 29% 21%
------------------ ---------------------
Group recurring revenue 8,519 6,940 23% 19%
-------- -------- ------------------ ---------------------
Group total revenue 9,070 7,489 21% 18%
-------- -------- ------------------ ---------------------
Group adjusted EBITDA* 24 (148) n/a
-------- -------- -----------------------------------------
Group adjusted loss before tax* (724) (472) (53)%
-------- -------- -----------------------------------------
Group loss before tax (880) (949) 7%
-------- -------- -----------------------------------------
Net cash 2,131 1,991 7%
-------- -------- -----------------------------------------
Financial highlights
-- Further acceleration of constant currency ARR growth to 21%
(H1 2021: 13%), with healthy new business, improving churn and
successful monetisation
-- Recurring revenue growth of 19% at constant currency to GBP8.5m (H1 2021: GBP7.0m)
-- Recurring revenue comprises 94% of total revenues (H1 2021: 93%)
-- Gross margin remains strong at 90.4% (H1 2021: 91.8%) with greater volume of cloud revenue
-- Adjusted EBITDA at breakeven (H1 2021: GBP(0.1)m) -
reflecting ongoing growth investment in line with strategic
roadmap
-- Net cash of GBP2.1m (H1 2021: GBP2.0m) remains strong,
underpinned by undrawn committed GBP2.0m facility
Operational highlights
-- Strong net revenue retention of 100.6% per month (H1 2021:
99.3%), reflecting successful fair-price monetisation efforts and
value customers ascribe to our solutions
-- Group ARPU up 15% at constant currency to GBP245 (H1 2021: GBP207)
-- 8% increase in paying users to 73,667 (H1 2021: 68,030)
-- Strengthened position in insolvency market following signing
of another UK Top 10 accountancy firm for Virtual Cabinet's cloud
offering, powered by Workiro
-- Continued to build out footprint in NetSuite channel for
Workiro with total of five partner agreements now signed
-- Development of operational infrastructure around Certified
Vault progressing to plan, supporting planned scale up of customer
acquisition efforts in 2023
-- Integration of October 2021's technology acquisitions on
target, with commercial launch expected by end of this year,
broadening the Group's capabilities to drive ARPU growth through
its portfolio of productivity software products
-- Group now annually handles more than 250 million documents
and executes over 3 million digital signatures among over 2 million
collaborators
Further upgrade to revenue expectations for 2022(#)
-- Despite the wider backdrop of economic uncertainty, our core
markets remain robust, driven by structural changes in the way
people work and a strengthening mandate for productivity
optimisation
-- Continuing ARR momentum and resilient customer demand is
expected to drive 2022 Group revenue to at least GBP18.4m (previous
guidance of GBP17.0m)
-- Group expected to remain modestly profitable at the Adjusted
EBITDA level during H2 2022, marginally ahead of current
expectations for 2022
-- Group continues to invest in its operations and people to
support long-term growth and management's ambition to double ARR
over the next five years
Daniel Rabie, CEO of GetBusy, comments:
"Momentum has continued to build during GetBusy's record first
half of 2022, with constant currency ARR growth of 21%, stronger
than we reported in our AGM update two months ago.
"More than ever, GetBusy's products are delivering tangible
value to our clients, across a larger addressable market, helping
them to remain as productive, efficient and secure as possible in
the face of rising cost pressures and operational complexities. Our
very high - and improving - customer retention rates demonstrate
how embedded our growing range of capabilities have become within
our clients' technology stacks, a trend we expect to continue as
the tailwinds of digital transformation, cyber security, privacy
legislation and hybrid working strengthen.
"As we continue to win new clients in our core markets,
introduce new capabilities into our existing client base and
establish a foothold in new markets, we anticipate that ARR growth
will remain strong throughout H2, and we now expect revenue in 2022
to be ahead of previously upgraded expectations."
*Adjusted EBITDA is Adjusted Loss before Tax stated after
capitalised development costs. A full list of our alternative
performance measures, together with a glossary of certain terms,
can be found in note 2.
* Adjusted Loss before Tax is Loss before tax, depreciation and
amortisation on owned assets, share option costs, net capitalised
development costs, finance costs that are not related to leases,
and non-underlying items.
(+) Changes at constant currency are calculated by retranslating
the comparative period at the current period's prevailing rate of
exchange.
(#) Current market expectations for 2022, in advance of
publishing this announcement, are considered to comprise revenue of
GBP17.0m, Adjusted EBITDA of GBP(0.5)m and Adjusted Loss before Tax
of GBP(1.3)m.
A copy of the presentation to investors will be available on the
Company's website, at www.getbusyplc.com shortly.
GetBusy plc
investors@getbusy.com
Panmure Gordon (Financial Adviser, Nominated
Adviser and Broker)
Alina Vaskina / James Sinclair-Ford (Corporate
Advisory) +44 (0)20 7886
Erik Anderson (Corporate Broking) 2500
Alma PR (Financial PR) +44 (0)20 7886
Hilary Buchanan / Andy Bryant / Hannah Campbell 2500
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK
DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018
("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. THE
PERSON RESPONSIBLE FOR MAKING THIS ANNOUNCEMENT ON BEHALF OF THE
COMPANY IS PAUL HAWORTH.
About GetBusy
GetBusy's specialist productivity software solutions enable
growing businesses to work securely and efficiently with their
customers, suppliers and teams anytime, anywhere. Our solutions can
be delivered flexibly across cloud, mobile, hosted and on-premise
platforms, whilst integrating seamlessly with a wide variety of
other class-leading core business systems.
With over 73,000 paying users across multiple market sectors and
jurisdictions, GetBusy is an established and fast-growing SaaS
business delivering sustained double-digit growth in high-quality
recurring subscription revenue over the long term.
Further information on the Group is available at
www.getbusyplc.com
Our focus is on recurring revenue - predictable, scalable and
valuable
The strong performance in the first half of the year is driven
by continued execution against the Group's consistent growth
strategy: new customers and markets, customer retention,
monetisation and product expansion.
Growing recurring subscription revenue remains our focus.
The reliable and predictable revenue runrate from software
subscriptions provides a solid foundation for mid- to long-term
planning. Our high gross margins, strong customer retention rates
and the favourable working capital profile arising from a high
proportion of customers paying annually in advance, de-risk the
investments we can make to drive future growth. Our business model,
allows us to double down responsibly on growth investment in a
cautious macro-economic environment, building a highly valuable
base of customer cashflows that have annuity characteristics.
ARR grew 21% at constant currency to GBP18.1m (H1 2021:
GBP14.0m), through a combination of new customer acquisition,
strong customer retention rates and higher monetisation within our
established products. ARR is up 9% at constant currency from the
beginning of the current year.
Predictable
Users were up 8% to 73,667, with new business contributing
significantly to this growth. Predictability is key to our customer
acquisition model; we consistently return more than GBP4 in
customer lifetime value for every GBP1 spent on acquiring a new
customer. Once acquired, our customers tend to be sticky: gross
churn is resilient, averaging 0.9% per month In H1, a slight
improvement on H1 2021 (1.0%) despite the anticipated increase
arising from higher monetisation.
ARPU was up 15% at constant currency to GBP245. The size of our
customer base enables us to draw valuable insights from users,
informing product development and the retention activities of our
customer success teams. That insight also proves the value of the
productivity benefits delivered to our customers, enabling us to
set fair prices for our new and existing clients with
confidence.
Our strong net revenue retention of 100.6% (H1 2021: 99.3%)
provides us with outstanding visibility over near-term growth,
built from a very stable foundation of predictable recurring
revenue.
The absence of significant customer concentration contributes to
the reliability of revenue generated from our customer base; no
single client accounts for more than 2% of revenue.
Scalable
The professional and financial services markets that the Group
targets are large and under-penetrated. GetBusy's software
portfolio adds a productivity layer to core business applications,
simplifying workflows, improving productivity, enhancing security
and delighting clients. With the strengthening tailwinds of digital
transformation, privacy legislation, mobility and cyber security,
these supportive market dynamics will provide substantial growth
opportunities for the Group for years to come. Many organisations
are still very early on their software automation journeys, and the
depth of our expertise within these markets positions us well to
provide an ever-increasing set of solutions to customers on that
journey.
Our strong LTV:CAC ratio of 4:1 (H1 2021: 4:1) allows us to ramp
our customer acquisition spend with a high degree of confidence in
the return. Typically more than 65% of our customers elect for
contracts that are paid annually in advance, providing us with
structural working capital benefits that fund additional investment
in growth. Our gross margin of 90.4% (H1 2021: 91.6%) means there
are minimal incremental operating costs from acquiring new
customers, which in the long term leads to substantial operating
leverage and cash generation.
The strength of our integrations with core business
applications, such as practice management or tax preparation
software, contributes to our strong customer retention. Those
integrations also provide channel opportunities for us, enabling us
to leverage a partner's access to well-defined customers, improving
customer acquisition scalability. We are aiming to build stronger
channels for our established products, notably in the insolvency
sector and within the SME accounting market in the US. Channels are
also a key part of our customer acquisition strategy for our
emerging products Workiro and Certified Vault, with the former
increasing the number of NetSuite value-added reseller partners to
five during H1.
Valuable
GetBusy focuses on the professional and financial services
markets, with over 70% of revenue derived from the accountancy
sector. These markets have remained buoyant during H1 and
historically have proved resilient in the face of significant
economic uncertainty. The battle to recruit and retain professional
talent, and the well-documented related inflationary challenges,
will drive increased adoption of productivity and automation tools.
The insolvency sector, a key growth area for GetBusy, is expected
to become particularly active as the strain of two years of
extraordinary financial pressures takes its toll on vulnerable
sectors.
The degree to which our products are embedded in our customers'
everyday workflows, and integrated into other mission-critical
applications, contributes to our low churn rates and high levels of
net revenue retention. This leads to a subscription revenue base
that has valuable annuity characteristics; the Group's customer
base at its initial public offering in 2017 generates more ARR
today than it did then as a result of strong retention, increased
penetration, revenue expansion from upsell and price uplifts.
This high-quality customer base has considerable strategic
value. Through over 20 years of product and brand development, we
have, through our portfolio of innovative products, built leading
positions in attractive markets with high barriers to entry.
Transaction multiples paid within the broader professional services
software market - frequently in excess of 7x ARR - validate the
importance of those customer relationships and how selling
additional products to those customers can create significant value
over the long term. Our continuing investments in additional
capabilities are made with this in mind. Over the longer term, we
expect our emerging products, including Workiro and Certified
Vault, to contribute more meaningfully to growth as the products
mature and brand recognition is established.
Business and financial review
Group H1 2022 H1 2021 Change
Reported Constant
currency currency
---------- ----------
ARR at 30 June GBP18.1m GBP14.0m 29% 21%
---------- ---------- ---------- ----------
Recurring revenue GBP8,519k GBP6,940k 23% 19%
---------- ---------- ---------- ----------
Total revenue GBP9,070k GBP7,489k 21% 18%
---------- ---------- ---------- ----------
Adjusted EBITDA GBP24k GBP(148)k n/a
---------- ---------- ----------------------
Adjusted loss before
tax GBP(724) GBP(472)k (53%)
---------- ---------- ----------------------
Paying users at 30
June 73,667 68,030 8%
---------- ---------- ----------------------
ARPU at 30 June GBP245 GBP207 18% 15%
---------- ---------- ---------- ----------
Net revenue retention 100.6% 99.4% n/a
---------- ---------- ----------------------
Established products
SmartVault and Virtual Cabinet have clear leading positions in
their respective markets.
SmartVault has particular strength within the SME accounting and
tax space in the US, a market which we estimate to exceed $250m in
ARR. SmartVault is the only fully-integrated cloud document
management provider for Intuit's leading Lacerte and ProSeries tax
preparation products; the workflow productivity benefits from this
tight integration lead to outstanding customer retention rates,
typically five times better than for the broader customer base.
SmartVault's product development continued apace during H1. Our
recently released e-mail capture capability was iterated, and we
introduced custom-branded e-mail messaging and a significantly
updated and refreshed user interface for large parts of the
product.
During H1, Virtual Cabinet further enhanced its position in the
insolvency sector, including securing the insolvency division of
another UK top 10 accounting firm. This position is strengthened
through Virtual Cabinet's integration with Workiro, providing a
clear path for customers embarking on their cloud journey whilst
retaining the class-leading capabilities of Virtual Cabinet and its
deep integrations into a wide range of core professional
applications.
As well as a refreshed user interface and branding for Virtual
Cabinet, next-generation search capabilities were developed and
launched together with user analytics, improved OneDrive
integration and an integration with PostWorks, the digital mailroom
provider, which is a core technology for many insolvency firms. The
Workiro technology is also proving to be an attractive cloud
pathway for many Virtual Cabinet customers, with substantial
overlap between the requirements of the ERP market and Virtual
Cabinet's established and target customer base.
Emerging products
Our emerging products provide further growth potential for the
Group. Each addresses a validated productivity need within a
clearly identified and large market that shares the favourable
characteristics and helpful tailwinds of our core professional
services markets.
Workiro provides intuitive document management, task,
communication and approval capability, with an initial focus on
Oracle's NetSuite cloud ERP application, into which Workiro is
deeply integrated. NetSuite's installed base of over 30,000
enterprise customers provides a considerable market opportunity for
Workiro, with the broader cloud ERP market being significantly
larger.
During H1 we have added four value-added resellers, bringing the
total to five, and have focused on brand recognition to help
establish initial sales momentum. Workiro was identified as "truly
innovative" and selected by accountancy and business advisory firm,
BDO, from hundreds of high-growth businesses for the inaugural
Growth Programme, dedicated to helping high growth technology
businesses to scale up.
Certified Vault was introduced into the asset finance market in
the US in 2021, providing secure custody of electronic chattel
paper on behalf of secured lending institutions. Following an
encouraging start towards the end of 2021, we have tempered
customer acquisition while we further develop and prepare the
product, and the surrounding operational infrastructure, for the
rigorous security and compliance demands of the larger financial
services market. This essential work, which will create a very
solid and sustainable foundation for Certified Vault in what is a
large, highly attractive and under-served market, is progressing
well and we expect to start to scale customer acquisition efforts
in 2023.
Integration with our established products of the form-fill and
quoting technologies acquired last year is progressing to plan. We
expect these capabilities to be available initially to our
SmartVault user base during Q4 2022, with Virtual Cabinet
integrations to follow. These technologies provide valuable
expansion revenue opportunity among our substantial base of over
73,000 users.
Financials
Recurring revenue grew 19% at constant currency to GBP8.5m,
reflecting the strong ARR momentum carried forward at the start of
the year and the subsequent ARR growth. 51% of recurring revenue in
H1 was denominated in USD, driving reported recurring revenue
growth of 23%.
Non-recurring revenue of GBP0.6m was essentially flat compared
to H1 2021; growth in non-recurring add-ons in SmartVault was
offset by the planned reduction in Virtual Cabinet as older
customers converted onto pure SaaS models, a process which is now
largely complete. Total revenue was up 18% at constant currency to
GBP9.1m.
Gross margin of 90.4% (H1 2021: 91.6%) reflects the greater
proportion of revenue from our cloud products, including
SmartVault.
SG&A costs of GBP6.8m (H1 2021: GBP5.5m) reflect a number of
investments across the business to underpin future growth and
improve the infrastructure of the Group to support additional
scale. This includes investments in customer acquisition teams
across the Group, customer success teams, which drive customer
retention and expansion revenue campaigns, and a
professionalisation of our cyber security capabilities. We
continued to build out our product development functions to support
capability improvements across the Group, and developer costs of
GBP2.1m were 15% higher (H1 2021: GBP1.9m).
GBP0.7m of development costs were capitalised (H1 2021:
GBP0.3m), including a variety of capability enhancements across
Virtual Cabinet and SmartVault and elements of the core application
builds for Certified Vault and Workiro.
Adjusted EBITDA was GBP0.0m (H1 2021: GBP(0.1)m), whilst
Adjusted Loss, which is stated before development capitalisation,
was GBP(0.7)m (H1 2021: GBP(0.5)m).
The increase in depreciation on owned assets and amortisation is
due to the impact of continued capitalisation of development costs.
Share option costs remained at GBP0.3m (H1 2021: GBP0.3m) and
reflect both the IFRS2 charge on the options granted and the
increase in the provision for employment taxes due if options are
exercised. Non-underlying costs of GBP0.1m (H1 2021: GBP0.1m)
comprise corporate restructuring costs together with an increase in
the provision for potential historic sales tax liabilities in
certain jurisdictions in the US.
The tax credit of GBP0.3m (H1 2021: credit of GBP0.2m) reflects
the expected UK research and development tax credit offset by
overseas tax payable in Australia and New Zealand. The Group still
has sizeable carried forward tax losses in the UK and US.
Working capital movements were broadly neutral in H1, with
favourable deferred revenue movements offsetting payables outflows.
Capital expenditure of GBP0.2m and the adjusted loss of GBP(0.7)m
were offset by net tax receipts, mostly from the UK research and
development tax credit.
Consolidated income statement
For the six months ended 30 June 2022
H1 2022 H1 2021 FY 2021
Note GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Revenue 3 9,070 7,489 15,448
Cost of sales (873) (630) (1,295)
Gross profit 8,197 6,859 14,153
Operating costs (9,010) (7,741) (16,355)
Net finance costs (67) (67) (133)
Loss before tax 3 (880) (949) (2,335)
Loss before tax (880) (949) (2,335)
Depreciation and amortisation
on owned assets 487 408 706
Share option costs including
social security 287 309 667
Non-underlying costs 99 58 400
Finance costs / (income) not
related to leases 31 26 52
----------- ----------------- -------------------
Adjusted EBITDA 24 (148) (510)
Capitalised development costs (748) (324) (712)
-----------
Adjusted loss before tax (724) (472) (1,222)
---------------------------------- ----- ----------- -----------------
Tax 332 206 771
Loss for the period attributable
to owners of the Company (548) (743) (1,564)
=========== ================= ===================
Loss per share (pence)
Basic 4 (1.10) (1.50) (3.16)
=========== ================= ===================
Diluted 4 (1.10) (1.50) (3.16)
=========== ================= ===================
Consolidated statement of comprehensive income
For the six months ended 30 June 2022
H1 2022 H1 2021 FY 2021
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Loss for the period (548) (743) (1,564)
----------- ----------- ----------
Other comprehensive income /
(expense)
Exchange differences on translation
of foreign operations (335) 21 (17)
-----------
Other comprehensive income /
(expense) net of tax (335) 21 (17)
----------- ----------- ----------
Total comprehensive loss for
the period (883) (722) (1,581)
=========== =========== ==========
Consolidated balance sheet
At 30 June 2022
30 June 31 December 30 June
2022 2021 2021
GBP'000 GBP'000 GBP'000
Unaudited Audited Unaudited
Non-current assets
Intangible assets 1,591 1,110 831
Right of use assets - leases 1,463 1,544 1,661
Property, plant and equipment 426 426 435
-----------
3,480 3,080 2,927
----------- -------------- -----------
Current assets
Trade and other receivables 1,939 1,907 1,599
Current tax receivable 451 1,021 154
Cash and bank balances 2,131 2,670 1,991
----------- -------------- -----------
4,521 5,598 3,744
----------- -------------- -----------
Total assets 8,001 8,678 6,671
----------- -------------- -----------
Current liabilities
Trade and other payables (3,865) (3,917) (2,574)
Deferred revenue (5,701) (5,469) (4,336)
Lease liabilities (373) (333) (288)
Current tax payable (280) (378) (91)
----------- -----------
(10,219) (10,097) (7,289)
----------- -------------- -----------
Non-current liabilities
Deferred revenue - (4) -
Lease liabilities (1,465) (1,533) (1,670)
----------- -------------- -----------
(1,465) (1,537) (1,670)
----------- -------------- -----------
Total liabilities (11,684) (11,634) (8,959)
----------- -------------- -----------
Net assets (3,683) (2,956) (2,288)
=========== ============== ===========
Equity
Share capital 74 74 74
Share premium account 3,018 3,018 3,018
Demerger reserve (3,085) (3,085) (3,085)
Retained earnings (3,690) (2,963) (2,295)
----------- -------------- -----------
Equity attributable to shareholders
of the parent (3,683) (2,956) (2,288)
=========== ============== ===========
Consolidatd statement of changes in equity
For the six months ended 30 June 2022
Share
Share premium Demerger Retained
capital account Reserve earnings Total
2022 Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2022 74 3,018 (3,085) (2,963) (2,956)
---------- --------- ----------- ----------- --------
Profit for the period - - - (548) (548)
Exchange differences on translation
of foreign operations, net
of tax - - - (335) (335)
---------- --------- ----------- ----------- --------
Total comprehensive profit
attributable to equity holders
of the parent - - - (883) (883)
Issue of ordinary shares - - - - -
---------- --------- ----------- ----------- --------
Total transactions with owners - - - - -
of the Company
Share option costs - - - 156 156
---------- --------- ----------- ----------- --------
- - - 156 156
At 30 June 2022 74 3,018 (3,085) (3,690) (3,683)
========== ========= =========== =========== ========
Share
Share premium Demerger Retained
capital account Reserve earnings Total
2021 Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2021 74 3,018 (3,085) (1,782) (1,775)
---------- --------- ----------- ----------- --------
Profit for the period - - - (743) (743)
Exchange differences on translation
of foreign operations, net
of tax - - - 21 21
Total comprehensive loss
attributable to equity holders
of the parent - - - (722) (722)
Issue of ordinary shares - - - - -
---------- --------- ----------- ----------- --------
Total transactions with owners - - - - -
of the Company
Share option costs - - - 209 209
---------- --------- ----------- ----------- --------
- - - 209 209
At 30 June 2021 74 3,018 (3,085) (2,295) (2,288)
========== ========= =========== =========== ========
Share
Share premium Demerger Retained
capital account Reserve earnings Total
2021 Audited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2021 74 3,018 (3,085) (1,782) (1,775)
---------- --------- ----------- ----------- --------
Profit for the period - - - (1,564) (1,564)
Exchange differences on translation
of foreign operations, net
of tax - - - (17) (17)
---------- --------- ----------- ----------- --------
Total comprehensive loss
attributable to equity holders
of the parent - - - (1,581) (1,581)
Issue of ordinary shares - - - - -
---------- --------- ----------- ----------- --------
Total transactions with owners - - - - -
of the Company
Share option costs - - - 400 400
---------- --------- ----------- ----------- --------
- - - 400 400
At 31 December 2021 74 3,018 (3,085) (2,963) (2,956)
========== ========= =========== =========== ========
Consolidated cash flow statement
For the six months ended 30 June 2022
H1 2022 H1 2021 FY 2021
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Adjusted loss before tax (724) (472) (1,222)
Depreciation of right of use asset
- leases 158 153 316
Income statement cost of interest
on finance leases 36 41 81
(Increase)/ decrease in receivables (31) 216 (92)
(Decrease) / increase in payables (288) (156) 1,093
Increase/ (decrease) in deferred
income 228 (330) 806
Cash used in operations (621) (548) 982
Non-underlying costs (99) (58) (400)
Income taxes received 790 638 623
Interest paid (25) (26) (52)
----------- ----------- ---------
Net cash from operating activities 45 6 1,153
----------- ----------- ---------
Purchases of property, plant and
equipment (77) (124) (181)
Purchases of other intangible assets (143) (42) (163)
----------- ----------- ---------
Net cash used in investing activities (220) (166) (344)
----------- ----------- ---------
Principal portion of lease payments (130) (147) (261)
Interest on lease liabilities (36) (16) (81)
Net cash from financing activities (166) (163) (342)
----------- ----------- ---------
Net increase/(decrease) in cash (341) (323) 467
Cash and bank balances at beginning
of period 2,670 2,283 2,283
Effects of foreign exchange rates (198) 31 (80)
----------- ----------- ---------
Cash and bank balances at end
of period 2,131 1,991 2,670
=========== =========== =========
Notes to the financial information
1. General information
These interim financial statements are for the six months ended
30 June 2022. They do not require all the information required for
full annual financial statements and should be read in conjunction
with the consolidated financial statements of the Group for the
year ended 31 December 2021.
These financial statements are presented in pounds sterling
because that is the currency of the primary economic environment in
which the group operates.
2. Basis of preparation and accounting policies
The financial information set out above does not constitute
statutory accounts within the meaning of section s434(3) of the
Companies Act 2006 or contain sufficient information to comply with
the disclosure requirements of UK-adopted International Accounting
Standards ("IFRS").
The financial statements of GetBusy plc for the year ended 31
December 2021 were authorised for issue by the Board of Directors
on 28 February 2022. The auditors have reported on these accounts
and their reports were unqualified, did not draw attention to any
matters by way of emphasis and did not contain any statements under
s498 (2) or (3) of the Companies Act 2006.
These interim financial statements are prepared on the same
basis as the financial statements for the year ended 31 December
2021, in which our full set of accounting policies, including
critical judgements and key sources of estimation uncertainty, can
be found.
Alternative performance measures
The Group uses a series of non-IFRS alternative performance
measures ("APMs") in its narrative and financial reporting. These
measures are used because we believe they provide additional
insight into the performance of the Group and are complementary to
our IFRS performance measures. This belief is supported by the
discussions that we have on a regular basis with a wide variety of
stakeholders, including shareholders, staff and advisers.
The APMs used by the Group, their definition and the reasons for
using them, are provided below:
Recurring revenue . This includes revenue from software
subscriptions and support contracts. A key part of our strategy is
to grow our high-quality recurring revenue base. Reporting
recurring revenue allows shareholders to assess our progress in
executing our strategy.
Adjusted Profit / Loss before Tax . This is calculated as profit
/ loss before tax and before certain items, which are listed below
along with an explanation as to why they are excluded:
Depreciation and amortisation of owned assets. These non-cash
charges to the income statement are subject to judgement. Excluding
them from this measure removes the impact of that judgement and
provides a measure of profit that is more closely aligned with
operating cashflow. Only depreciation on owned assets is excluded;
depreciation on leased assets remains a component of adjusted
profit / loss because, combined with interest expense on lease
liabilities, it is a proxy for the cash cost of the leases.
Share option costs . Judgement is applied in calculating the
fair value of share options and subsequent charge to the income
statement, which has no cash impact. The impact of potentially
dilutive share options is also considered in diluted earnings per
share. Therefore, excluding share option costs from Adjusted Profit
/ Loss before Tax removes the impact of that judgement and provides
a measure of profit that is more closely aligned with cashflow.
Capitalised development costs . There is a very broad range of
approaches across companies in applying IAS38 Intangible assets in
their financial statements. There are also many examples of
companies being criticised for using the capitalisation and
amortisation of development costs as a method of manipulating
profit, due to the substantial management judgement involved in
applying the standard. To assist transparency, we exclude the
impact of capitalising development costs from Adjusted Profit /
Loss before Tax in order that shareholders can more easily
determine the performance of the business before the application of
that significant judgement. The impact of development cost
capitalisation is recorded within operating costs. The cashflow
statement reconciles from Adjusted Profit / Loss before Tax, and so
there is no adjustment for development amortisation within
operating cashflows and no adjustment for development
capitalisation within cashflows from investing activities.
Non -underlying costs. Occasionally, we incur costs that are not
representative of the underlying performance of the business. In
such instances, those costs may be excluded from Adjusted Profit /
Loss before Tax and recorded separately. In all cases, a full
description of their nature is provided.
Finance costs / (income) not related to leases . These are
finance costs and income such as interest on bank balances. It
excludes the interest expense on lease liabilities under IFRS16
because, combined with depreciation on leased assets, it is a proxy
for the cash cost of the leases.
Adjusted EBITDA . This is calculated as Adjusted Profit / Loss
before Tax with capitalised development costs added back.
Constant currency measures . As a Group that operates in
different territories, we also measure our revenue performance
before the impact of changes in exchange rates.
Glossary of terms
The following terms are used within these financial
statements:
MRR. Monthly recurring revenue. That is, the monthly value of
subscription and support revenue, both of which are classified as
recurring revenue.
ARR . Annualised MRR. For a given month, the MRR multiplied by
12.
CAC . Customer acquisition cost. This is the average cost to
acquire a customer account, including the costs of marketing staff,
content, advertising and other campaign costs, sales staff and
commissions.
LTV. Lifetime value, calculated as the average revenue per
account multiplied by the average gross margin and divided by gross
MRR churn.
MRR churn . The average percentage of MRR lost in a month due to
customers leaving our platforms.
Net revenue retention . The average percentage retained after a
month due to the combined impact of customers leaving our
platforms, customers upgrading or downgrading their accounts and
price increases or reductions.
ARPU . Annualised MRR per paid user at a point in time.
3. Revenue and operating segments
The Group's chief operating decision maker is considered to be
the Board of Directors. Performance of the business and the
deployment of capital is monitored on a group basis. Additional
revenue analysis is presented by territory.
H1 2022 Unaudited UK USA AUS/NZ Total
GBP'000 GBP'000 GBP'000 GBP'000
Recurring revenue 3,207 4,330 982 8,519
Non-recurring
revenue 275 233 43 551
--------- --------- --------- ---------
Revenue from
contracts with
customers 3,482 4,563 1,025 9,070
Cost of sales (873)
---------
Gross profit 8,197
Sales, general
and admin costs (6,792)
Development
costs (2,129)
---------
Adjusted loss
before tax (724)
Capitalisation
of development
costs 748
---------
Adjusted EBITDA 24
Depreciation
and amortisation
on owned assets (487)
Share option
costs (287)
Non-underlying
costs (99)
Other finance
income / (costs) (31)
---------
Loss before
tax (880)
=========
H1 2021 Unaudited UK USA AUS/NZ Total
GBP'000 GBP'000 GBP'000 GBP'000
Recurring revenue 3,133 2,835 972 6,940
Non-recurring
revenue 324 198 27 549
--------- --------- --------- ---------
Revenue from
contracts with
customers 3,457 3,033 999 7,489
Cost of sales (630)
---------
Gross profit 6,859
Sales, general
and admin costs (5,479)
Development
costs (1,852)
---------
Adjusted loss
before tax (472)
Capitalisation
of development
costs 324
---------
Adjusted EBITDA (148)
Depreciation
and amortisation
on owned assets (408)
Share option
costs (309)
Non-underlying
costs (58)
Other finance
income / (costs) (26)
---------
Loss before
tax (949)
=========
2021 Audited UK GBP'000 USA AUS/NZ Total
GBP'000 GBP'000 GBP'000
Recurring revenue 6,280 6,119 1,944 14,343
Non-recurring
revenue 661 365 79 1,105
------------------- --------- --------- ---------
Revenue from
contracts with
customers 6,941 6,484 2,023 15,448
Cost of sales (1,295)
---------
Gross profit 14,153
Sales, general
and admin costs (11,588)
Development
costs (3,787)
---------
Adjusted loss
before tax (1,222)
Capitalisation of development
costs 712
---------
Adjusted EBITDA (510)
Depreciation and amortisation on
owned assets (706)
Share option
costs (400)
Social security costs on share options (267)
Non-underlying
costs (400)
Other finance
costs (52)
---------
Loss before
tax (2,335)
=========
4. Loss per share
The calculation of loss per share is based on the loss for the
period of GBP548k (H1 2021: loss of GBP743k).
Weighted number of shares calculation H1 2022 H1 2021 FY 2021
'000 '000 '000
Unaudited Unaudited Audited
Weighted average number of ordinary
shares 49,580 49,471 49,516
Effect of potentially dilutive n/a n/a n/a
share options in issue
----------- ----------- ---------
Weighted average number of ordinary n/a 49,471 n/a
shares (diluted)
=========== =========== =========
Loss per share H1 2022 H1 2021 FY 2021
pence pence pence
Unaudited Unaudited Audited
Basic (1.10) (1.50) (3.16)
=========== =========== =========
Diluted (1.10) (1.50) (3.16)
=========== =========== =========
At 30 June 2022 there were 7,427,628 shares under option. As
required by IAS33 (Earnings per Share), the impact of potentially
dilutive options was disregarded for the purposes of calculating
diluted loss per share in the Period as the Group was loss
making.
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END
IR SFLFWEEESEFW
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