Activeops Regulatory News (AOM)

25 April 2023

ActiveOps plc

("ActiveOps" or the "Company")

Full Year Trading Update

Strong financial performance across all metrics

ActiveOps plc (AIM: AOM), a leading provider of Management Process Automation (MPA) software for running hybrid and global back-office operations, today provides an update on trading for the year ended 31 March 2023.

The Board is pleased to announce that following continued positive trading in the second half of the year, it expects to deliver results for the year ahead of market expectations*. Group revenue is expected to have increased by approximately 11% to at least £25m (FY 2022: £22.9m), which combined with the Group's high gross margins, and a significant positive impact from currency movements, has resulted in a stronger than expected profit performance delivering a positive adjusted EBITDA** (FY 2022: loss £0.3m).

Cash generation has also been strong, resulting in a year-end cash position of £15.4m (March 31, 2022: £13.8m), increasing to £17.5m following additional cash receipts shortly after the year end.

SaaS revenue is expected to have increased by approximately 13% (FY 2022: £19.6m), which combined with increasing levels of Net Revenue Retention has seen Annual Recurring Revenue also increase by approximately 13% to £22.6m (31 March 2022: £20.1m) as the Group continues to build a solid base of recurring revenues from which to drive further growth.

ActiveOps has seen good uptake of the newly launched CaseWorkiQ solution, as well as securing multiple new wins and contract expansions for its existing software solutions, ControliQ and WorkiQ. This includes the first example of all three products within one customer, demonstrating the cross and upsell potential within the existing customer base.

The R&D team continues to ensure ActiveOps maintains its status as a provider of market leading Management Process Automation products, making considerable advances in the areas of artificial intelligence (AI) and automation, providing clients with new means to increase the efficiency of their back-office, support their planning processes and ultimately provide greater resilience and agility within their organisations.

The Group expects to release audited results for the year ended 31 March 2023 in early July 2023.

Richard Jeffery, Chief Executive Officer of ActiveOps plc, commented: "ActiveOps has gone from strength to strength in the past year, delivering ahead of the targets we set ourselves at the time of our IPO, securing a strong revenue performance and achieving a positive EBITDA run rate as we entered the final quarter of the year. We have continued to expand the usage of our offerings across our growing roster of blue-chip customers, demonstrating the appeal of our solutions and the clear return on investment they deliver our clients within these tough macro-economic times.

"With a cutting-edge product set that helps clients solve real-time issues, high levels of recurring revenues, a clear pathway to profitability, increasing cash position and a resilient and diverse customer base, we are well placed to continue to deliver against our growth plans."

* Company compiled range is based on known sell-side analyst estimates. The latest known sell-side analyst estimates for the full year ended 31 March 2023 are:

** Adjusted EBITDA is used by management to assess the trading performance of the business. Defined as Operating profit before depreciation, amortisation, share-based payment charges and exceptional items and includes FX differences.

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About ActiveOps

ActiveOps is a leader in Management Process Automation (MPA), providing a SaaS platform to large enterprises with complex and often global back-offices. The Group's software and embedded back-office operations management methodology enables enterprises to adopt a data-driven, scientific approach to organising work and managing capacity.

The Group's enterprise platform comprises its MPA software products and AOM, the Group's operations methodology and framework for effective back-office management. Together, this combination of software and embedded methodology enables operations managers to balance the competing priorities of meeting service and quality standards while improving productivity and reducing cost.

As at 30 September 2022, the Group has 180 employees, serving its global customer base of over 80 enterprise customers from offices in the UK, Ireland, USA, Australia, India and South Africa. The Group's customers are predominantly in the banking, insurance and business process outsourcing (BPO) sectors, including Nationwide, TD Bank, Anthem Inc and DXC Technology.