Smartspace Software – Half-year Report

Smartspace Software – Half-year Report

SmartSpace (AIM: SMRT), the leading provider of 'Workspace Management Software' for smart buildings, commercial spaces and the hospitality sector announces its unaudited interim results for the six months ended 31 July 2018.

The interim results reflect the disposal of the Systems Integration and Managed Services divisions for £21.6m in cash in mid-June 2018 and are based on the continuing operations of the 'Connect' software and 'OneSpace' occupancy management software platforms and A+K's distribution business. 

Financial Highlights:

  • Revenue from continuing operations of £1.9 million (FY18 H1: £2.1 million)
  • Adjusted LBITDA* £1.9 million (FY18 H1 LBITDA: £0.2 million)
  • Profit before tax from continuing operations of £0.6 million (FY18 H1: loss £0.7 million)
  • Profit from disposal of subsidiaries £1.9 million (FY18 H1: £nil)
  • Basic EPS from continuing operations of 3.2 pence (FY18 H1: 3.8 pence loss per share)
  • Net cash position at 31 July 2018 £13.4 million (FY18 H1: £0.8 million)

* Results for the period from continuing operations before net finance costs, depreciation, amortisation, integration and transactional items, profit on disposal of subsidiary companies, impairment charges and share based payment charge.

Operational Highlights:

  • Completion of disposal of Comunica Holdings Ltd and Commensus Ltd for total cash consideration £21.6 million, £19.6 million received in June 2018 with a further £2.0 million additional consideration due subject to the satisfactory conclusion of a particular project
  • Successful rebranding of the Company as SmartSpace Software Plc
  • Part of the proceeds received from the disposal used to repay in full the Barclays term loan
  • EMI options granted over a total 466,500 ordinary shares to 58 employees
  • Trading in-line with management expectations with strong pipeline of contracts across the Group heavily weighted for the second half

Post Period End Highlights:

  • Acquisition of 100% of the share capital of Swiped On Limited, a company registered in New Zealand, for a total consideration of £5.4 million (NZ$ 11.0 million), satisfied by £4.2 million in cash (NZ$ 8.6 million) and £1.2 million (NZ$ 2.4 million) in equity

Board Changes with effect from 18 June 2018:

  • Frank Beechinor appointed as Chief Executive Officer
  • Guy van Zwanenberg appointed as Chairman
     

Frank Beechinor, CEO of SmartSpace, commented: 

"The second half of the year has started well and I expect to see the strong pipeline of near term opportunities develop into contracts over the coming months, particularly workspace management. The market continues to show increased demand for our products with businesses increasingly focusing on ways in which to optimise their corporate real estate. We have a growing list of new client engagements with live proof of concept projects and we hope to convert these into SaaS contracts in the coming months. 

We are confident, that with our strong cash position, we will be able to accelerate the growth of the Company through our 'buy and build' acquisition strategy, as illustrated by the recent Swiped On acquisition, with a focus on successfully identifying the right targets which complement our 'smart' software proposition.

I would like to take this opportunity to thank our team for their continued hard work. The quality and commitment of our staff is our biggest strength as we move to this next stage of evolution of the business."

A copy of these interim results together with further information on the Company is available on the Company's website at: www.smartspaceplc.com.

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