Last checked at 18 Jan 2018 07:00
microgen
www.microgen.com
18 January 2018
MICROGEN plc ('Microgen' or 'the Group')
TRADING UPDATE & NOTICE OF RESULTS
Microgen plc has made excellent progress in 2017. The Group's two businesses continue to execute successfully their declared strategies with Aptitude Software delivering strong organic growth and Microgen Financial Systems continuing its transition towards a business focussed on the Trust & Fund Administration ('T&FA') market. The Aptitude Software business complemented its organic growth strategy with the August 2017 acquisition of California-based RevStream, whilst Microgen Financial Systems acquired Toronto-based T&FA specialist Primacy in February 2017. Both acquisitions continue to perform in line with expectations.
Microgen Financial Systems has maintained its focus on the Trust & Fund Administration ('T&FA') market within the wealth management sector benefitting from both organic growth and the contribution from Primacy. The combination of organic growth and focused acquisitions has led to revenues from T&FA representing over 60% of Microgen Financial Systems' revenue in 2017 (2016: 54%), with the T&FA on-going recurring revenue now standing at £8.8 million (2016: £6.9 million), an increase of 28%. The increase in the T&FA on-going recurring revenue base in 2017 was 16%, excluding the acquisition of Primacy. (The on-going recurring revenue base includes recurring revenues contracted but yet to commence and excludes recurring revenues which are currently being received but are known to be terminating in the future).
Aptitude Software has continued to make excellent new business progress in the second half of 2017 highlighted by the first RevStream sales under Aptitude Software's ownership and concluding with a strategically important contract with one of the world's largest technology businesses for the recently launched Aptitude Lease Accounting Engine ('ALAE'). New business effort in 2018 will be focussed on further sales of the successful Aptitude Revenue Recognition Engine, ALAE, RevStream and early sales of the new Aptitude Insurance Calculation Engine which addresses the requirements of IFRS 17, a new accounting standard focussed on insurance contracts. Aptitude Software's on-going recurring revenue base now stands at £19.3 million (2016: £12.6 million), an increase of 53%. The increase in the on-going recurring revenue base in 2017 was 30%, excluding the acquisition of RevStream.
Microgen anticipates issuing its preliminary results for the year ended 31 December 2017 on 7 March 2018.
Contacts
Ivan Martin, Chairman 020-7496-8100
Philip Wood, Chief Financial Officer
Darius Alexander, FTI Consulting 020-3727-1063