27 Oct 2017 07:00
27 October 2017
ATTRAQT Group plc
("ATTRAQT", the "Group" or the "Company")
Trading Update
Following Eric Dodd's appointment as Finance Director on 1 September 2017, and at the Board's request, a detailed review of the Company's forecasts has been undertaken. The review has concluded that due to inaccuracies in forecasting the timing of certain contracts and client "go-live" dates, it is necessary for the Company to revise its full year outlook.
The Company now expects revenues for the full year to be circa 10% below previous expectations but still showing year on year high single digit organic growth and to be EBITDA positive in the second half of the year as well as being broadly breakeven for the year as a whole. The lower revenue run rate at the end of 2017 will carry forward into 2018.
The delay in pipeline conversion is due to a number of significant new contracts closing but later than planned, and some other contract decisions being delayed. Inaccuracies in estimating the period between engagement and the "go-live" dates have also been identified by the review.
The Company's sales pipeline remains strong, with the Company continuing to win new client logos and sell upgrades to its existing clients. The management is confident that the forecasting around the timing of contract wins has now been resolved.
The Company also has a strong order book of £2m Annualised Contract Value and the management is working on a plan to resolve delayed "go-live" dates.
The Company is working on the expectation that a significant proportion of the attrition risk relating to clients re-platforming (as discussed at the time of the interim results), will crystallise early in 2018. The mitigating actions outlined in the interim statement, including the hiring of additional account management resource, will continue to be implemented.
At 30 September 2017 the Company had cash of £2.3m.
For further information, please contact:
ATTRAQT Group plc | via Alma PR |
André Brown, Group CEO Eric Dodd, CFO |
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Gemma Williams (née Owen-Smith), Head of Marketing and Communications |
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N+1 Singer | Tel: 020 7496 3000 |
Shaun Dobson, Lauren Kettle |
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Alma PR | Tel: 020 3865 9667 |
Rebecca Sanders-Hewett, Susie Hudson |
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About ATTRAQT
ATTRAQT Group plc specialises in onsite search, online merchandising and eCommerce personalisation with two product offerings: Freestyle Merchandising and Fredhopper. The Group's customer base is made up of over 230 client logos ranging from SMEs to global, blue-chip businesses. ATTRAQT has a strong base in the UK and western Europe, with a presence in North America, eastern Europe and ANZ. For more information, please visit: www.attraqt.com.