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(Alliance News) - SmartSpace Software PLC on Monday said it expects interim revenue growth of 9.0%, as forward looking annual recurring revenue soars.
The Suffolk-based IT service management company expects revenue for the half year that ended July 31 to be GBP2.5 million, a 9.0% increase from GBP2.3 million in the same period last year. Of the predicted revenue, 63% is recurring.
Its forward looking ARR was GBP3.8 million as at July 31, a 28% rise in the six-month period and a 51% rise year-on-year.
Shares in SmartSpace were down 10% at GBP150.10 pence in London on Monday.
The company's SwipedOn platform accrued forward looking ARR of GBP3.2 million, a 22% rise in the six-month period and a 43% rise year-on-year.
SwipedOn's new offering, SwipedOn Desks, had its first customers signed in the half year.
Smartspace's workspace product Space Connect signed 14 new partner agreements in the half year and more than doubled its ARR to GBP400,000. Of those partnerships, five were reseller agreements signed in July.
"SwipedOn Desks, along with enhanced features and a focus on larger multi-location contracts, continue to be major catalysts for achieving our growth objectives for SwipedOn," said Chief Executive Frank Beechinor.
"In Space Connect the continued successful partnership with our existing partners will continue to develop, whilst more recently-signed resellers are already growing their sales pipelines. We will continue to expand the reseller base in new international geographies."
However, the company's office equipment subsidiary Anders & Kern Ltd's sales were below expectations due to the most recent national lockdown.
Beechinor added that Smartspace's management is confident that "growth will accelerate in the second half of the year" and the company's full year figures will be in line with market expectations.
By Josie O'Brien; josieobrien@alliancenews.com
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