D4T4 Solutions PLC Trading Update FY2017 (to 31 March 2017) (2566C)
12 April 2017 - 4:00PM
UK Regulatory
TIDMD4T4
RNS Number : 2566C
D4T4 Solutions PLC
12 April 2017
Immediate release
Wednesday, 12 April 2017
D4t4 Solutions Plc
'ALL ABOUT THE DATA'
(the "Company, "Group" or "D4t4")
Trading update
D4t4 Solutions Plc (AIM: D4t4), specialists in data solutions,
is pleased to provide the following trading update, ahead of the
publication of the Group's final results for the financial year
ended 31 March 2017 which are expected to be released in the week
commencing 26 June 2017.
Highlights:
Ø Profit (excluding the FX gain) expected to be ahead of current
market expectations
Ø Celebrus software product sales grew significantly year on
year - accounting for over a quarter of Group sales
Ø Group margin enhancement reflecting strong growth in software
and recurring revenues
Ø Strong cash generation - strengthened net cash position
Ø D4t4 enters the new financial year in robust shape
Ø Encouraging pipeline & opportunities ahead
Ø Remain confident in our strategy, prospects and future
performance
Peter Kear, Chief Executive of D4t4 commented:
"Our strategy continues to deliver and is reflected in strong
profit growth and increasing gross profit margins. The business
enters the new financial year in robust shape and we are encouraged
by the opportunities and outlook for the business in the coming
year. Consequently, as a Board we are also confident in delivering
our expectations for the financial year ending March 2018."
2016 overview
The Group has over the last two years focused on increasing its
emphasis on data management and analytics and in our successful
re-branding exercise completed in July 2016. In the last financial
year the Company has made good solid progress with its strategic
goals growing software revenues and associated services.
To date there has been no material impact from the UK's
Referendum decision to leave the EU, albeit this is subject to any
items that might change in the coming 24 months as the Government
negotiate the UK's exit from the European Union. As an
international business working with UK and multinational companies
we believe in our strategy and the Board remains confident the
business and its people have the flexibility and foresight to meet
any challenges as and when they arise.
Trading performance
We are delighted to report that we continue to benefit from the
upward demand for our Celebrus software products and this has
resulted in these sales last year growing by 48%. Celebrus software
is a key offering and now accounts for 28% of Group revenue
compared to 18% in the prior year. This change in our business mix
has significantly benefitted our gross profit margins, with profit
expected to be ahead of market expectations on this basis and
further improved by the movement in foreign exchange rates.
Reported Group revenue for FY17 is expected to be c. GBP17.7m.
Our Recurring income stream reported a change in its mix of client
business reflecting the Celebrus growth. Demand for managed private
cloud and software Licence maintenance services business was solid
and this segment returned a trading performance in line with
budget. Projects revenue is down year on year reflecting the impact
of delays to the commencement of certain projects, particularly in
the US due in part to the nervousness and uncertainty leading up to
and post the US presidential election; following 'the first 100
days' confidence appears to be returning, and those delayed
decisions by both existing and new clients are starting to move
forward. In addition, within our legacy business, we witnessed one
of our major Japanese clients who recently had gone through
turbulent times reduce their overall group spending globally which
subsequently impacted our work scheduling during the year.
Financial position
Net cash at the end of March stood at GBP5.1m (FY2016: GBP3.4m).
The Company continues to have a solid balance sheet and to generate
cash.
Dividend policy
We remain committed to a progressive dividend policy and as a
Board we expect to declare an increase in the dividend payable for
the 2016 financial year which is in line with our previously stated
intentions.
Summary outlook
There will always be macroeconomic factors that no business can
fully mitigate including currency volatility and more recently the
possible wider potential implications of Brexit.
We remain confident in the Group's strategy; our underlying
business is delivering against our key KPIs and is performing well
and with the renewed confidence from our US clients D4t4 is
well-positioned in its key markets. The current revenue visibility,
order book and pipeline of opportunities bodes well for the
future.
In summary, the business enters the new financial year in robust
shape and we are encouraged by the opportunities and outlook for
the business in the coming year. As a result, we remain confident
that we can achieve the current management expectations for the
financial year 2017/2018.
ENQUIRIES
D4t4 Solutions Plc
Peter Kear, Chief Executive Officer
Carmel Warren, Chief Financial Officer
Tel: +44 (0) 1932 893333
email: moreinfo@d4t4solutions.com
finnCap
(Nominated adviser & broker)
Ed Frisby/Emily Watts - Corporate Finance
Stephen Norcross - Corporate Broking
Tel: +44 (0) 20 7220 0500
TooleyStreet Communications
(IR & media relations)
Fiona Tooley:
Tel: +44 (0) 7785 703523
or email: fiona@tooleystreet.com
About D4t4 Solutions Plc
AIM: D4T4
D4t4 Solutions Plc is "ALL ABOUT THE DATA."
We are energetically focused on solutions that enable
clients who operate from within the financial services,
retail, electronics and telecommunications sectors
to get the most from their data. From collection,
through to management and analysis, we provide comprehensive
products and services that drive value from our clients'
information assets. We are accredited in ISO27001:
Information Security Management and PCI Data Security
Standard.
To find out more, visit www.d4t4solutions.com
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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