The North East software company has reported excellent growth figures this quarter.
Revenues have increased, and the firm has seen a significant rise in its software subscription business.
Quarterly Financial Performance
The company enjoyed a strong quarter with revenues reaching £465 million. The growth rate was an impressive 7.6 per cent, highlighting the firm’s strong market position.
The software subscription business saw a remarkable increase of 27.7 per cent, contributing £237 million to the total revenue. This underscores the firm’s successful transition towards a subscription-based model.
Recurring and Software-Related Services Revenue
The company’s recurring revenue for the three months leading up to December 31st amounted to £387 million, a 10 per cent increase compared to the same period last year.
Interestingly, sales from software and software-related services fell by 5.8 per cent to £65 million, demonstrating a shift in the company’s revenue structure.
Performance in North America and the UK
In North America, the firm saw significant revenue growth of 10.4 per cent, resulting in £154 million for the quarter.
The UK and Ireland also showed a positive trend with revenue growth of 5.9 per cent, bringing in £96 million during the same period.
These figures indicate that the company is thriving in both its home market and abroad, showcasing its global reach and adaptability.
Strategic Business Moves
The company announced the sale of its US-based payroll outsourcing business for £78 million. This move is seen as part of a strategic effort to streamline operations and focus on core competencies.
The sale is expected to provide additional capital, which could be reinvested into more profitable areas or used to bolster the company’s financial stability.
Management Appointments
December saw the appointment of an experienced finance veteran as the new chief financial officer, indicating a strategic move to strengthen the management team.
In November, the company named a new CEO, Steve Hare, who has already made a positive impact.
CEO’s Perspective
Steve Hare expressed his enthusiasm about the strong start to FY19. He stated, “We have been encouraged by the strong start to FY19, reflecting the renewed focus on high-quality subscription and recurring revenue as we continue the journey to becoming a great SaaS business.”
His statement reflects the company’s commitment to evolving into a world-class SaaS business, focusing on high-quality, reliable revenue streams.
Future Projections
The CEO reiterated the company’s full-year guidance for FY19, as previously outlined in the FY18 results announcement.
This consistent forward-looking outlook aims to reassure investors and stakeholders about the company’s strategic direction and growth potential.
The North East software company has clearly demonstrated strong growth and strategic vision.
With an impressive increase in subscription revenue and successful management appointments, the company is well-positioned for future success.