(Sharecast News) - Governance, risk and compliance (GRC) software specialist Acuity RM said in an update on Wednesday that, in the nine months following the acquisition of Acuity Risk Management in April last year, it had seen solid growth.
The AIM-traded firm said it had achieved its highest-ever order intake, recorded substantial revenues, and secured its largest contract to date.
Additionally, key performance indicators (KPIs) had shown strong performance, suggesting continued growth into 2024.
During the nine months from April to December 2023, Acuity recorded revenue of £1.4m, compared to £1.75m for the entire 12 months ended 31 March.
As of 31 December, the company had total cash and cash receipts from debtors expected in January of £1.2m.
The company's bank balance as of 12 January stood at £0.9m.
Sales orders received during the period were ahead 44%, reaching £1.6m valued at first 12 months' revenue, compared to £1.1m in the same period in 2022.
Acuity said its forward contracted revenue as of 31 December had reached £2.9m, marking decent growth from £2.2m on 28 February 2023.
Contract renewals for 2023 achieved 85%, slightly lower than the 96% rate recorded as of 31 March 2023.
Notably, Acuity secured its largest-ever contract valued at £0.56m in December, while its pipeline of sales prospects expanded substantially to reach £7.9m as of 31 December, compared to £4.2 million in March.
Partnerships played a vital role in that growth, the board said, as they contributed £1.4m to the pipeline as of the end of December, up from £0.8m in 2022.
The directors said they were satisfied with the progress of the company's partnerships network.
In 2023, Acuity welcomed new partners including Claritas, Logicalis, Nettitude, Security Executive Council US and Sopra Steria.
Activity with the partners intensified throughout the year, resulting in the acquisition of three new clients and a promising pipeline of potential sales worth £1.4m by 31 December.
Furthermore, Acuity announced a contract win following its last update on 12 December.
The company said it secured a contract worth £0.11m with a Turkey-based travel company, which would involve the implementation of 'STREAM' on a two-year agreement, with an option to extend for a third year.
"The nine months of trading from 1 April to 31 December 2023 shows real progress and the indications are that the pace of expansion is increasing," said executive chairman Angus Forrest.
"There is much to do but the opportunity is large and I expect further significant progress in 2024."
At 1418 GMT, shares in Acuity RM Group were up 2.15% at 4.75p.
Reporting by Josh White for Sharecast.com.
Acuity Rm Grp (ACRM)