REG - Aferian PLC - Trading Update, Banking Facility & New Chairman

AferianAnnouncement

13/12/2021 07:00

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RNS Number : 3492V  Aferian PLC  13 December 2021

13 December 2021

 

AFERIAN PLC

 

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

 

Trading Update, Banking Facility & New Chairman appointment

 

- Strong financial performance, with strong YoY exit ARR growth of 42% -

 

- New multi bank committed loan facility of up to $100m -

 

Aferian plc (LSE AIM: AFRN), the B2B video streaming solutions company, is
pleased to provide a trading update for the year ended 30 November 2021.

Trading update

The Group expects to report that all its key financial metrics have tracked
ahead of the prior year, and in line with Board expectations, representing an
overall strong trading performance. As well as delivering further progress
against its stated 2025 growth strategy, the Group has also successfully
navigated well-documented global supply chain challenges.

At a headline level, the Group expects to report(1):

 ·   total revenue of approximately $92.0m representing a c11% increase on the
     previous year ended 30 November 2020 ("FY20");
 ·   adjusted operating profit(2) growth up over 10% on last year;
 ·   improved quality of earnings thanks to higher-margin software and services
     revenue of approximately $22.5m: a c15% increase on FY20.  This includes
     recurring revenue of approximately $13m, a c17% increase on FY20;
 ·   enhanced revenue visibility with an exit run rate Annual Recurring Revenue
     ("ARR") of approximately $15.0m, up 42% from $10.6m ARR as at 30 November
     2020;
 ·   a strengthened net cash position of $14.0m at 30 November 2021 (30 November
     2020: $9.5m).

This improved net cash position comes alongside the Group's expectation that
it will report a net working capital outflow for the year as a whole.  Whilst
there is no underlying change to our debtor profile or cash generated,
navigating the well-known supply chain issues in the period was challenging
and the timing of some device shipments was pushed very close to our year
end.  This means cash will be collected after the end of the period.

In addition to the strong growth in exit ARR, the Group has further visibility
of next year's devices revenue as the Group's customers place orders up to 60
weeks in advance in response to extended lead times in the supply chain.

New banking facilities

The Group has agreed a new banking facility with Barclays Bank plc, Silicon
Valley Bank, and Bank of Ireland.  This increased facility of $50m, split
evenly across the new three bank club, also includes a further $50m available
by way of an accordion.  The increased facility will support the Group in
achieving its 2025 strategy, particularly with regards to the execution of
targeted acquisitions.  The new facility has a three year term with options
to extend by a further one or two years.

The existing bank facility with Barclays Bank plc remains undrawn and it is
expected that the new facility, subject to the closure of customary
conditions, will be fully available to the Group by the end of December 2021.

Appointment of new Chairman

As announced in June 2021, Karen Bach notified the Board of her intentions to
step down as Non-Executive Chairman following nearly six years of service on
the Group's Board of Directors.

The Group is pleased to announce that, following a rigorous search process,
the Board has appointed a new Non-Executive Chairman, Mark Wells, who will
take up the position and join the Board of Directors on 1 January 2022.  Mark
brings a wealth of experience, gained through his 30-year career, guiding UK
growth technology businesses in value creation. He brings extensive boardroom
experience, including as Non-Executive Chairman for the inertial navigation
specialists, Oxford Technical Solutions Limited, and for the predictive
maintenance software provider, Senseye. In addition, Mark was a Non-Executive
Director for Kofax, where he supported the business in its transition from a
hardware company into a software-led business specialising in intelligent
automation for digital workflow transformation.  He was previously CEO of
visual effects company, Image Metrics.

Notice of results

Further detail on the Group's performance for the year ended 30 November 2021
will be provided at the Company's full year results for the year ended 30
November 2021 expected to be announced during the week commencing 7 February
2022.

Donald McGarva, Chief Executive Officer of Aferian plc, said:

"This financial year Aferian has delivered an overall strong performance, with
each of the key metrics tracking ahead of last year. Our 2025 strategy
continues to evolve our business into a leading video streaming solutions
company with more predictable and higher-quality recurring software and
services revenue. The visibility we have into next year's performance is high.
I am particularly proud of our team's delivery here, especially given the
backdrop of tough supply chain challenges all organisations have had to
manage.

"On behalf of the Board and the entire Aferian team, I am pleased to welcome
Mark Wells to our business as Non-Executive Chairman. He joins us on 1 January
2022 at a moment of real strength and real ambition. We look forward to
benefiting from his contribution as we push on towards our 2025 goals.  Mark
will take over from Karen Bach, who steps down on 31 December 2021.  On
behalf of the Board, I would like to thank Karen for her service and
support.  We have all benefitted from her energy and perspective."

Mark Wells, Non-Executive Chairman Designate of Aferian plc, said:

"I have a real enthusiasm for working with ambitious software and technology
companies and as such am excited to be joining the board of Aferian. Their
2025 strategy for moving into the centre of streaming services and pay TV is
impressive, and I welcome the opportunity to join the Company as it continues
to make progress executing its ambitious strategy and capitalising on
structural shifts in the TV market. I look forward to bringing my 30 years of
experience within the software industry to help the Company grow and achieve
its targets."

(1)All numbers in this section are unaudited.

(2)Adjusted operating profit is a non-GAAP measure and excludes amortization
of acquired intangible assets, exceptional items and share-based payment
charges.

The following information is disclosed pursuant to Rule 17 and Schedule Two
paragraph (g) of the AIM Rules for Companies.

Mark Benjamin Wells (66 years old) has been a director or partner of the
following companies during the five years preceding the date of this
announcement:

 

 Current directorships and/or partnerships  Past directorships and/or partnerships
 Cappfinity Limited                         Sky Futures Partners Limited
 Invu Plc                                   Romax Technology Limited
 Oxford Technical Solutions Limited         Cortexplus Limited
 Senseye Limited
 Visasset Limited

 

This announcement contains inside information and for the purposes of MAR and
Article 2 of Commission Implementing Regulation (EU) 2016/1055 (as it forms
part of the laws of the United Kingdom by virtue of the European Union
(Withdrawal) Act 2018, as amended from time to time), the person responsible
for arranging for the release of this Announcement on behalf of the Company is
Mark Carlisle, Chief Financial Officer.

For further information please contact:

 

 Aferian plc                                         +44 (0)1223 598197
 Donald McGarva, Chief Executive Officer

 Mark Carlisle, Chief Financial Officer

 Investec plc (NOMAD and Broker)                     +44 (0)20 7597 5970
 David Anderson / Patrick Robb / Cameron MacRitchie

 FTI Consulting LLP (Financial communications)       +44 (0)20 3727 1000
 Matt Dixon / Elena Kalinskaya / Gregory Hynes

 

About Aferian plc

Aferian plc (AIM: AFRN) is a B2B video streaming solutions company. Our
end-to-end solutions bring live and on-demand video to every kind of screen.
We create the forward-thinking solutions that our customers need to drive
subscriber engagement, audience satisfaction, and revenue growth.

 

It is our belief that successful media companies and services will be those
that are most consumer-centric, data driven and flexible to change. We focus
on innovating technologies that enable our customers stay ahead of evolving
viewer demand by providing smarter, more cost-effective ways of delivering
end-to-end modern TV and video experiences to consumers. By anticipating
technological and behavioural audience trends, our software solutions empower
our customers to heighten viewer enjoyment, drive growth in audience share and
ultimately their profitability.

 

Aferian plc has two operating companies: 24i, which focusses on streaming
video experiences, and Amino, which connects Pay TV to streaming services. Our
two complementary companies combine their products and services to create
solutions which ensure that people can consume TV and video how and when they
want it. Our solutions deliver modern TV and video experiences every day to
millions of viewers globally, via our growing global customer base of over 500
service providers.

 

Aferian plc is listed on the London Stock Exchange Alternative Investment
Market (AIM: symbol AFRN). Headquartered in Cambridge, UK, the company has
over 350 staff located in offices in San
Francisco, Amsterdam, Helsinki, Copenhagen, Madrid, Porto, Brno, Buenos
Aires, and Hong Kong. For more information, please visit www.aferian.com
(http://www.aferian.com/)

 

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