REG - Actual Experience - Year End Trading Update

Actual ExperienceAnnouncement

10/12/2021 07:00

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RNS Number : 2008V  Actual Experience PLC  10 December 2021

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).

 

10 December 2021

Actual Experience plc

(the "Company" or "Actual Experience" or "Actual")

 

Year End Trading update

 

Actual Experience (AIM: ACT), the analytics-as-a-service company, today
announces a trading update for its financial year ended 30 September 2021. The
Company intends announcing its results for the year in January 2022.

Our first full year operating our professional services 'land and expand'
model has seen good progress, faster customer engagement and quicker software
deployment. The hybrid workplace revolution has seen continued momentum,
prompting a wider recognition by the market of the power of our unique
technology. Together with the launch of our direct sales function, and
enhanced engagement with our Channel Partners, this has resulted in new
business wins as announced in recent months, for our Business Impact
Assessment (BIA), and our Continuous Improvement (CI) services.

In respect of the financial year just ended, the Company generated revenues of
£1.7m (2020: £1.9m); £0.1m of the reduction from the previous year was
attributable to the fall in value of sterling against the US dollar. As
planned, the Company incurred a pre-tax loss as a result of the ongoing
investment in technology, sales and marketing functions. Looking forward, we
expect to begin to benefit from the ramp up of revenues being generated by new
business wins, set against the probability that a long standing contract
(originally announced in 2018 via a Channel Partner), that relies on our
legacy offering, will not renew in the coming months due to a change in
customer strategy. This contract generated revenues of £1.2m in the year just
ended.

Following the placing conducted in January 2021, Actual Experience retains a
solid financial position with year end net cash standing at £8.2m (30
September 2020: £2.7m), with slightly reduced cash outflows from operating
activities of £3.7m for the year (2020: £3.9m).

Overall, whilst we have made good progress during the year, our sales cycle
remains lengthy and efforts to reduce this are being hampered by the pandemic
and the resultant elongation of procurement processes.

Encouragingly, however, we are seeing good momentum in our targeting of a
growing range of direct and Channel Partner sales opportunities, including
many large global blue-chip customers. From our sales pipeline development
during the financial year, 16 large blue chip opportunities emerged. Of these
one has already moved into CI, three have completed their BIA and are now
considering moving to CI, whilst the remaining engagements continue to move
forward with only one having dropped out of the pipeline.

The current total addressable market of employees in our target enterprises
has grown from four million to more than 12 million since January 2021 and we
expect to see more opportunities emerge from this funnel in the coming
financial year.

 

Dave Page, CEO of Actual Experience plc, commented:

"In 2021 we demonstrated our 'land and expand' business model and ability to
win large global blue-chip customers with our new customer offering. Going
into 2022, our focus will be continuing to convert the 15 large scale
opportunities to ongoing CI wins. Through the direct and partner sales
channels we will continue to develop similar new opportunities from our
funnel, delivering more new business wins to generate long term, profitable
contracted revenues. We are excited by the prospects in our pipeline and the
immediate opportunities in front of us, notwithstanding the challenge of
lengthy sales cycles, which we are working with our customers to reduce."

 

Enquiries:

 

 Actual Experience plc                     Tel: +44 (0)203 128 8170

 Dave Page, Chief Executive Officer

 Steve Bennetts, Chief Financial Officer

 Singer Capital Markets Advisory LLP       Tel: +44 (0)207 496 3000

 Shaun Dobson

 William Goode

 MHP Communications                        Tel: +44 (0)203 128 8170

 Reg Hoare

 James Bavister

 Alex Janiaud

 

Glossary

Business Impact Assessment (BIA) - typically undertaken for a representative
sample of employees, BIA establishes an organisation's people, planet and
business opportunity, and hence ROI, that would be realised by improving their
digital workplace using our Continuous Improvement service.

Continuous Improvement (CI) - designed to be undertaken for all digitally
enabled employees, CI is the ongoing use of Actual Experience
analytics-as-a-service to improve an organisation's digital workplace in order
to realise the people, planet and business opportunity identified in the BIA.

Pipeline - Actual Experience's pipeline of new business consists of a set of
customers at various stages of the sales process starting with customers that
have been identified by Actual Experience and/or its Channel Partners for a
targeted sales campaign.

About Actual Experience

Actual Experience's goal is to make the digital world work properly for
everybody, everywhere, all of the time.

Our analytics-as-a-service has been developed from 10 years of academic
research. Using patented technology, the Company analyses the human experience
of digital services. In essence, Actual Experience's analytics-as-a-service
creates a new, unique and highly actionable dataset that helps CHROs and
CEOs to quantify and realise the opportunity it has to accelerate their
people, planet and business agenda through the improvement of their digital
workplace. No interaction with employees is required.

The focus of our analytics-as-a-service is on improving the digital
workplace, creating a level playing field for all employees, improving
business efficiency, and enabling the reduction of business travel and hence
carbon emissions. In this way, it also provides important new data so that
companies can act to drive their ESG and DE&I agenda.

Actual Experience is listed on the London Stock Exchange (AIM: ACT). Our
corporate headquarters is in Bath, UK. Actual Experience's unique and patented
digital analytics-as-a-service is founded on cutting-edge research at Queen
Mary University of London.

For further information please visit www.actual-experience.com
(http://www.actual-experience.com/)

 

 

 

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