SmartSpace Software, (LON:SMRT) the leading provider of ‘Integrated Space Management Software’ for smart buildings, commercial spaces and hospitality has announced its unaudited interim results for the six months ended 31 July 2019.
Operational Highlights:
· Enterprise Business
o Focus on deploying existing Enterprise customers
o Continued investment in Workplace platform – versions 2.1 released in July 2019
o Good pipeline of business, predominantly from existing Enterprise customers
· Self-serve business
o Strong growth in SwipedOn business
o 23% growth in customers numbers from 2,713 on 1 February to 3,348 at the end of July
o ARR grown by 36% to NZ$2,570,000 at 31 July 2019 and increased to NZ$3,186,000 at 30 September, a 69% increase since the beginning of the financial year
o ARPU (Average Revenue Per User per month) grew by 10.4% during the period under review and has since increased further to NZ$75.05 by 30 September 2019
· Withdrew from retail market and ceased signing new customers
· Invested £2.1m in product development over the period (FY19 H1: £0.7m). enhancing the workspace management platform
Financial Highlights:
· A 57% increase in revenue from continuing operations to £3.0 million (FY19 H1: £1.9 million)
· Recurring revenue increase by 332% to £782k (FY19 H1 £181k)
· Adjusted LBITDA* £3.1 million (FY19 H1 LBITDA: £1.9 million)
· Loss before tax from continuing operations of £4.0 million (FY19 H1: loss £2.7 million)
· Basic loss per share from continuing operations of 16.1p (FY19 H1: loss 12.8 pence)
· Net cash position at 31 July 2019 £3.8m (FY19 H1: £13.4 million)
* Results for the period from continuing operations before net finance costs, depreciation, amortisation, integration and transactional items, impairment charges and share based payment charge.
Post Period End Highlights:
The Company has also announced today that it has agreed to acquire 100% of the share capital of Space Connect Pty Limited, a company registered in Australia, for a total consideration of approximately £3.2 million (A$ 6.0 million), satisfied by approximately £1.6 million in cash (A$ 3.0 million) and approximately £1.6 million (A$3.0 million) in equity. The acquisition brings the following benefits to SmartSpace:
• Cloud based software, fast to deploy platform
• Room booking, desk management, visitor management, catering and workspace analytics
• Software integrations with Microsoft Exchange, Google, Skype, Uber, Zoom
• Anticipated saving of up to £1.2m per annum in Group product development spend from 2020 onwards and accelerating development roadmap by up to two years
• Provides solution for immediate roll out in the UK and acceleration of current mid-market strategy
• Opens international channel sales opportunities
• Brings new technological capabilities into the Group including AI, Facial Recognition, Advanced Analytics and End-user configuration tools
• Space Connect product ownership, design, support and sales to be handled from the UK through existing resources
Frank Beechinor, CEO of SmartSpace, commented:
“The Group is continuing its transformation to a pure play software company. We have made great progress in the self-serve market with significant growth in customer numbers and ARPU and our SwipedOn business continues to go from strength to strength. Our sales and deployment efforts currently are focussed on Enterprise customers. We are in the process of deploying our technology for a number of new customers including our single largest customer, a global bank with 86,000 employees. The business continues to have a strong sales pipeline which consists mainly of follow-on business from existing customers. Through the Space Connect acquisition we are hoping to accelerate growth and our ability to cross-sell in our mid-market business which will be sold a purely on a SaaS basis.”
A copy of these interim results together with further information on the Company is available on the Company’s website at: www.smartspaceplc.com.
