Sopheon PLC Trading Update (0751B)
January 28 2020 - 2:00AM
UK Regulatory
TIDMSPE
RNS Number : 0751B
Sopheon PLC
28 January 2020
SOPHEON PLC
("Sopheon", the "Company" or the "Group")
TRADING UPDATE
Sopheon plc, the international provider of software, expertise,
and best practices for Enterprise Innovation Management, is pleased
to provide a further update on the Group's performance for the year
ended 31 December 2019.
Following on from our trading update of 11 December 2019, the
Board now expects to deliver reported revenues for the year ended
31 December 2019 of approximately $30m (2018: $34m) which is in
line with market expectations(1) . EBITDA and pre-tax profits are
also expected to be in line with market expectations(1) for the
year. The year-end net cash position is expected to be $19.2m
(2018: $16.7m) underlining the continued cash generative nature of
the business.
The final quarter was one of the strongest on record, with
revenues over $9m and with 23 license transactions signed, of which
11 were new customers. A number of these new orders were for SaaS
(Software as a Service) licenses. Of the total 47 license
transactions concluded in all of 2019, 18 were for new customers,
matching 2018's strong performance in a key metric that shows
underlying momentum and commercial traction. This activity gives us
an opening order book of approximately $3m in services for 2020. In
addition, we enter 2020 with a base of $15.9m in ARR (Annual
Recurring Revenue) compared to $14.8m on entry to 2019. As we have
noted in recent communications, our strategic direction is to
increase the proportion of recurring revenue and this is reflected
in a growing sales pipeline that shows rising levels of SaaS
opportunities. An example of a SaaS opportunity closed at the end
of 2019 is an initial order from Hain Celestial, a leading global
organic and natural products company.
The Board is also delighted that Sopheon has won the best
performing company slot in the enterprise software category of
Megabuyte's Quoted25 awards, announced last week.
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 2019, on 19 March 2020.
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) 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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