(Alliance News) - Actual Experience PLC shares fell on Thursday after it reported annual revenue had fallen and losses had widened in its recent financial year.
The Bath, England-based hybrid workplace analytics-as-a-service company said revenue for the year that ended September 30 was down 13% to GBP1.7 million from GBP2.0 million.
"Our sales cycle has been longer than expected, and efforts to reduce this have been hampered by the pandemic and the resultant elongation of procurement processes and decision making across many industries," explained Chief Executive Officer Dave Page.
Lower revenue caused the company's pretax loss to widen to GBP5.9 million from GBP4.7 million in financial 2020, with lower tax credits and an impairment charge of GBP800,000 also contributing.
Actual Experience shares were down 8.9% to 13.90 pence in London on Thursday afternoon.
Net cash as of September 30 was GBP8.2 million, up from GBP2.8 million the previous year, with Actual Experience having completed an oversubscribed GBP10 million equity placing last January.
In 2022, Actual Experience will lose a GBP1.2 million contract, which was not renewed in its last year, having constituted the bulk of the company's revenue. The contract will contribute GBP400,000 during financial 2022 before it ends.
However, Actual Experience expects to see the first recurring revenue to come from a large multi-year order for its Continuous Improvement offering, signed in the prior year. It also won two more contracts for its Business Impact Assessment service.
"Positively, the continued focus on hybrid working and a growing investor focus on ESG and diversity, equity and inclusion are external factors that are strongly aligned with our new offering. We believe this macro-economic situation will continue to help us to accelerate the number of opportunities in our pipeline and grow our business with our existing blue-chip BIA and CI customers," Page continued.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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