LONDON (Alliance News) - Blue Prism Group PLC on Thursday said it has raised GBP100.0 million by way of a bookbuild process to accelerate growth and strengthen balance sheet, as it posted a sharply widened loss for its recently ended financial year.
The stock was trading 1.0% lower on Thursday morning at 1,148.00 pence a share, giving the company a market capitalisation of GBP771 million prior to the equity raising.
The robotic process automation software company said it placed 9.1 million shares at a price of 1,100p each, which represents 5.2% discount to the closing mid-market share price of 1,160p per share.
Investec Bank PLC was acting as financial adviser, nominated adviser, sole broker and sole bookrunner in connection with the placing.
"We are very pleased with the result of today's placing," said Chief Executive Alastair Bathgate.
"Building on another year of significant progress, today's investment provides us the firepower to deliver our plans for 2019, which will strengthen our leadership position and allow us to capitalise on the significant market opportunities available," added Bathgate.
In addition, the company said several directors have participated in the fundraising, with Bathgate subscribing for 22,727 shares at the placing price, worth GBP249,997.
Chief Financial Officer Ijoma Maluza bought 454 shares, worth GBP4,994, while Chief Evangelist Pat Geary acquired 9,090 shares, totalling GBP99,990.
Non-Executive Directors Charmaine Carmichael, Ken Lever and Chris Batterham bought a total of 14,401 shares, worth a combined GBP158,411.
Early on Thursday, Blue Prism said its loss widened to GBP26.0 million in the financial year to the end of October 2018 from GBP10.1 million in financial 2017, despite revenue more than doubling to GBP55.2 million from GBP24.5 million.
During the year, the company said it secured 1,359 software deals, up from 609 the year prior, taking its customer base to 992 clients from 477 clients.
As at the end of October 2018, there were over 78,000 individuals registered on the Blue Prism portal, more than doubled from 35,000 individuals the year prior.
In January last year, Blue Prism raised GBP40 million, which, it said, it has invested in sales and marketing and to strengthen its proposition through continued product development. As a result of these investments and an increase in sales commission, adjusted loss before interest, taxes, depreciation, and amortization widened to GBP21.6 million from GBP8.3 million year-on-year, the company explained.
Looking ahead, Blue Prism said the anticipated net proceeds of the share placing announced Thursday will be invested in initiatives to accelerate future growth. These investments will increase the Ebitda loss ahead of the levels guided in the trading update. At the end of November, the company had said it expects its Ebitda loss for financial 2019 to exceed those in financial 2018.
"I am delighted with the significant growth we have achieved in our 2018 financial year. We have continued to build a high quality, software licence revenue-base which provides a solid platform for future growth," said Bathgate.
