LONDON (Alliance News) - Blue Prism Group PLC on Thursday said it intends to raise GBP100.0 million before expenses to accelerate its global growth and further strengthen its balance sheet, as its loss widened sharply in its most 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 enterprise robotic process automation software company said the number and price at which the shares are to be placed will be determined at the close of the bookbuilding process.
Investec Bank PLC is acting as financial adviser, nominated adviser, sole broker and sole bookrunner in connection with the placing.
"Over the last year we have made significant progress in scaling and developing our business to address the compelling market opportunity we see ahead," said Chief Executive Alastair Bathgate.
"The proceeds raised via this placing will allow us to accelerate further, as we continue to invest in our people, product and processes to support the next stage of global growth," added Bathgate.
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.
