Executive Summary

Rubicon Software Group plc has built a customer relationship management (\CRM\) system called Accelerator to be used by financial services operations with a significant number of retail customers focusing in particular on clients which provide loan, mortgage, insurance, savings and investment products, in a highly regulated environment. Accelerator is designed to enhance the effectiveness and efficiency of customer service and sales targeting whilst offering management greater control of the compliance process. It does this by providing a single view of customers, automating workflow processes, providing prompts and scripts, and integrating with clients' back office systems. The Board has now decided to roll out Accelerator across its potential market. The Board is therefore seeking to increase the Group's sales and marketing spend and to increase its delivery team to support a higher level of sales. Rubicon is also seeking to migrate progressively from a perpetual licence model where a single licence fee is paid, to one based on annual licence fees. Such a migration has a negative short-term effect on cash flow but, in the longer term, should yield, in the opinion of the Directors, a significant increase in recurring, contracted revenue.

 

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