Microgen PLC Trading Update and Notice of Results (1872C)
18 January 2018 - 6:00PM
UK Regulatory
TIDMMCGN
RNS Number : 1872C
Microgen PLC
18 January 2018
microgen
www.microgen.com
18 January 2018
MICROGEN plc ('Microgen' or 'the Group')
TRADING UPDATE & NOTICE OF RESULTS
Microgen plc has made excellent progress in 2017. The Group's
two businesses continue to execute successfully their declared
strategies with Aptitude Software delivering strong organic growth
and Microgen Financial Systems continuing its transition towards a
business focussed on the Trust & Fund Administration
('T&FA') market. The Aptitude Software business complemented
its organic growth strategy with the August 2017 acquisition of
California-based RevStream, whilst Microgen Financial Systems
acquired Toronto-based T&FA specialist Primacy in February
2017. Both acquisitions continue to perform in line with
expectations.
Microgen Financial Systems has maintained its focus on the Trust
& Fund Administration ('T&FA') market within the wealth
management sector benefitting from both organic growth and the
contribution from Primacy. The combination of organic growth and
focused acquisitions has led to revenues from T&FA representing
over 60% of Microgen Financial Systems' revenue in 2017 (2016:
54%), with the T&FA on-going recurring revenue now standing at
GBP8.8 million (2016: GBP6.9 million), an increase of 28%. The
increase in the T&FA on-going recurring revenue base in 2017
was 16%, excluding the acquisition of Primacy. (The on-going
recurring revenue base includes recurring revenues contracted but
yet to commence and excludes recurring revenues which are currently
being received but are known to be terminating in the future).
Aptitude Software has continued to make excellent new business
progress in the second half of 2017 highlighted by the first
RevStream sales under Aptitude Software's ownership and concluding
with a strategically important contract with one of the world's
largest technology businesses for the recently launched Aptitude
Lease Accounting Engine ('ALAE'). New business effort in 2018 will
be focussed on further sales of the successful Aptitude Revenue
Recognition Engine, ALAE, RevStream and early sales of the new
Aptitude Insurance Calculation Engine which addresses the
requirements of IFRS 17, a new accounting standard focussed on
insurance contracts. Aptitude Software's on-going recurring revenue
base now stands at GBP19.3 million (2016: GBP12.6 million), an
increase of 53%. The increase in the on-going recurring revenue
base in 2017 was 30%, excluding the acquisition of RevStream.
Microgen anticipates issuing its preliminary results for the
year ended 31 December 2017 on 7 March 2018.
Contacts
Ivan Martin, Chairman 020-7496-8100
Philip Wood, Chief Financial Officer
Darius Alexander, FTI Consulting 020-3727-1063
This information is provided by RNS
The company news service from the London Stock Exchange
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