REG - ActiveOps PLC - Full Year Trading Update and Notice of Results

ActiveopsAnnouncement

24/04/2024 07:00

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RNS Number : 7681L  ActiveOps PLC  24 April 2024

24 April 2024

 

ActiveOps plc

("ActiveOps", the "Company" or the "Group")

 

Full Year Trading Update

and Notice of Results

 

ActiveOps plc (AIM: AOM), a leading provider of Decision Intelligence software
for service operations, is pleased to provide an update on trading for the
year ended 31 March 2024. Highlights include good growth in adjusted EBITDA*,
profit before tax and cash, with an 11% increase in SaaS revenue on a constant
currency ("CC") basis and exit Annual Recurring Revenue ("ARR") up by 14% CC
versus the prior year.

FY24 Financial highlights

Group revenue is expected to be approximately £26.8m, an increase of 5% on
the prior year (FY 2023: £25.5m) or approximately 9% on a CC basis,
reflecting a healthy SaaS performance alongside an ongoing challenging
backdrop for training and implementation services, as seen in H1.

The Group has seen strong growth in adjusted EBITDA which is expected to be at
least £2.2m (FY 2023: £0.7m), including an increase in capitalised R&D
spend of approximately £0.5m to £1.35m (FY 2023 £0.85m, capitalised), as
the Group continues to focus on the development of advanced AI-based product
features. In addition, prudent cost management has offset the impact of some
adverse FX movement. Building on the positive profit before tax performance
seen in H1, the Group expects to report continued strong growth in profit
before tax for the full year.

Cash generation has been strong, resulting in an increased year-end cash
position of £17.6m (FY 2023: £15.4m).

SaaS revenues increased by approximately 8% on the prior year (11% on a CC
basis). This, coupled with strong Net Revenue Retention of 110% on a CC basis
has seen Annual Recurring Revenue increase to approximately £25.1m, an
increase of approximately 11% on the prior year (FY 2023: £22.6m) or around
14% on a CC basis, providing a solid exit run rate for the year ahead.

FY24 Operational Highlights and Outlook

Operationally the Group has made good progress, securing new customer wins,
strong customer retention and encouraging expansion within the existing
customer base. The Group is successfully migrating customers onto ControliQ
Series 3 and momentum in CaseworkiQ continues to build, with total CaseworkiQ
ARR growth in the year of 95%.  Following additional investment in marketing,
the Company is seeing an increase in good-quality leads.

Of note in the year has been the winning of three significant ControliQ
enterprise contracts following thorough and competitive RfP processes. The
proven enterprise-scale capabilities of ControliQ and ability to deliver
material cost savings with rapid ROI, as well as ActiveOps' wider product set,
exciting AI and ML supported product roadmap, were instrumental to ActiveOps
being selected.

The Group remains well capitalised, and the strength of the balance sheet, the
strong market response to the Group's product roadmap and growing number of
well qualified sales leads, give the Board confidence to invest in the global
sales operation in the coming year, with a view to driving the Group's organic
growth rate.

As part of this focus on growth, the Company has recently expanded its Senior
Leadership Team through the appointment of a Group Managing Director, APAC
Regional Managing Director, and Regional Chair, Africa business, as announced
on 25 March 2024. Each individual brings valuable experience and will provide
increased focus on the execution of ActiveOps' growth strategy, as the Company
looks to build on the strong foundations established since IPO across its key
global markets.

ActiveOps CEO, Richard Jeffery commented: "FY 2024 has seen another solid year
for ActiveOps, expanding our customer base while launching exciting
innovations within our offerings. Having achieved continued progress in
profitability and with a strong balance sheet, we are well placed to invest in
the management structure and sales teams to drive further organic growth
across all our key markets. We are excited by the uptake of ControliQ Series 3
and the forthcoming release of Series 4, which with AI and ML technologies at
their core are primed to make a real difference for our customers and create
more value from their service operations. With a strong leadership team in
place and market leading offering, we look forward to the year ahead with
confidence."

 

Notice of Results

 

The Company intends to announce its results for the year ended 31 March 2024
on 25 June 2024.

 

* Adjusted EBITDA is used by management to assess the trading performance of
the business. Defined as Operating profit before depreciation, amortisation,
share-based payment charges and exceptional items and includes FX differences.

 

** Company compiled range is based on known sell-side analyst estimates. The
latest known sell-side analyst estimates for the full year ended 31 March 2024
are:

 

·      Revenue in the range of £27.3m to £27.4m

·      Adjusted EBITDA in the range of £1.0m to £1.3m

·      Adjusted PBT in the range of £0.4m to £0.7m

·      Cash in the range of £15.6m to £17.2m

 

 

For more information, please contact:

 

 ActiveOps                                 Via Alma
 Richard Jeffery, Chief Executive Officer  www.activeops.com (http://www.activeops.com/)
 Emma Salthouse, Chief Financial Officer

 Investec Bank plc                         +44 (0)20 7597 5970
 Corporate Broking & PLC Advisory
 Patrick Robb / Nick Prowting

 Alma Strategic Communications             + 44(0) 203 405 0205
 Caroline Forde / Will Ellis Hancock

 

About ActiveOps

The Company's offerings provide predictive and prescriptive insight to help
service operations make better decisions - faster.  The Company's AI-powered
SaaS solutions are underpinned by 15+ years of operational data and its AOM
methodology that's proven to drive cross department decision-making.

With Decision Intelligence, ActiveOps' customers deliver MORE - release 20%+
capacity within the first 12 months and boost productivity by 30%+ leading to
MORE business impact. Customer turnaround times are improved substantially,
costs are reduced, SLAs are met, and employees are happier and more engaged.

The Company has over 170 employees, serving a global customer base of over 80
enterprise customers from offices in the UK, Ireland, USA, Canada,
Australia, India and South Africa. The Group's customers are predominantly
in the banking, insurance, healthcare administration and business process
outsourcing (BPO) sectors, including Nationwide, TD Bank, Elevance and DXC
Technology.

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