(Alliance News) - SmartSpace Software PLC on Thursday posted a sharply widened loss for the first half of financial 2020 and said that it has acquired a Australian cloud-based room and desk booking platform for AUD6.0 million, around GBP3.2 million, in cash and stock.
The Luton, England-based company, which provides space management software, said it has acquired Space Connect Pty Ltd. Consideration of the deal will be satisfied by the issue of up to 2.0 million SmartSpace ordinary shares and cash of GBP1.6 million.
SmartSpace said the acquisition will lead to up to GBP1.2 million per annum in product development savings from 2020 onwards and bring new technological capabilities into the company.
To fund the cash consideration of the deal and for additional working capital, SmartSpace has raised GBP3.4 million via a placing of 4.7 million new ordinary shares at 72.5 pence share.
SmartSpace shares were down 2.0% at 72.50p each in London on Thursday afternoon.
For the six months to July 31, SmartSpace recorded a pretax loss of GBP3.9 million versus a GBP2.7 million pretax loss in the comparative year ago period. The widened loss was primarily attributed to increased administrative costs which jumped to GBP5.0 million from GBP3.5 million.
Interim revenue grew 57% year-on-year to GBP3.0 million from GBP1.9 million, with recurring revenue rising more than four-fold to GBP782,000 from GBP181,000. The company's customer numbers increased by 23% to 3,348 at the end of July from 2,713 on February 1.
SmartSpace Chief Executive Frank Beechinor said: "The business continues to have a strong sales pipeline which consists mainly of follow-on business from existing customers. Through the Space Connect acquisition we are hoping to accelerate growth and our ability to cross-sell in our mid-market business which will be sold a purely on a SaaS basis."
By Tapan Panchal; tapanpanchal@alliancenews.com
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