SmartSpace Software plc, (LON:SMRT) the leading provider of ‘Integrated Space Management Software’ for smart buildings and commercial spaces has provided its unaudited interim results for the six months ended 31st July 2020.
Financial Highlights:
· Recurring revenues comprising SaaS and software maintenance revenues, increased by 39% to £1,046,000 (FY20 H1: £753,000)
· Total Group revenues from continuing operations £2.32 million up 6.5% (FY20 H1: £2.18 million)
· Gross margin on continuing operations improved from 44% to 51% – reflecting the increase in higher margin SaaS revenues
· Group Adjusted LBITDA of £0.87 million (FY20 H1: £0.83 million)
· Loss per share from continuing operations of 3.47p (FY20 H1: Loss per share 4.86p)
· Total loss per share of 3.78p (FY20 H1: loss per share 16.14p) following the disposal of the Enterprise software division
· Cash balance at the period end of £1.6 million (FY20 H1: £4.2 million) and a net cash position of £1.14 million (FY20 H1: £3.8 million)
· Following the disposal of the Enterprise software division in August 2020 the Group had cash of £5.6 million at 30 September 2020
Operational Highlights including post review period
Enterprise
· Completed the sale of the Enterprise software division to Four Winds Interactive, for an initial consideration of £4.6m, payable in cash on completion, plus a further deferred payment of £0.4m, payable upon receipt R&D tax credits
SwipedOn
· Software developed to include Covid-19 ready pre-screening and contactless entry functionality
· SwipedOn added 691 new customers and 1,029 locations which increased annual recurring revenue (“ARR”) by 23% from NZ$3.64m to NZ$4.48m
· The average cost of acquiring each customer (“CAC”) during the period was NZ$1,200 and with a lifetime value per customer (“LTV”) of NZ$9,246 with LTV/CAC ratio around 8x
Space Connect
· Focus on development and release of its Covid-19 ready version of its mid-market SaaS workspace offering with functionality to help customers manage and implement their Covid-19 policies
· Recently announced significant reseller agreements with Softcat in the UK and ESCO in the Far East
· A further strategic partnership is signed with Evoko, the market-leading manufacturer of meeting room panels. This partnership continues to successfully move forward as Evoko gears up to release Naso to their partners globally in the Autumn 2020
Anders & Kern
· Following a significant fall in order intake through April and May as a result of the onset of Covid-19 there has been an upturn in orders as businesses reopen or prepare to reopen after lockdown
· A number of new distribution agreements including Iadea, a Taiwanese manufacturer of meeting room panels and desk presence sensors and Vergesense, a US supplier of battery-powered sensors
On outlook, Frank Beechinor, CEO of SmartSpace Software, commented:
“Despite the difficult economic backdrop, with the wide range of opportunities open to SmartSpace, the Board views the future with confidence. The international spread of our customer base is a strength in today’s market evidenced by the fact that whilst the UK and US were challenged by Covid-19, our business in Australasia grew. Although we already have customers in 73 countries, we are eager to enter new markets with local language versions.
It is our belief that our strategy of not being overly dependent on any one geographic market, vertical market or customer will allow us to build a robust SaaS business. There are considerable opportunities for growth – increasing ARPU by upselling additional subscriptions and multiple locations and cross selling other products to those existing customers and entering new geographic markets.
The sale of our Enterprise software division means we believe we have sufficient financial resources to execute on these organic plans without further recourse to shareholders.”
