BST.L Regulatory News (BST)

3 July 2018

Big Sofa Technologies Group plc

("Big Sofa" or the "Company")

AGM Statement

Big Sofa (AIM: BST), a fast-growing international video analytics provider to consumer brands and market research agencies, provides the following statement that will be given at the Annual General Meeting of the Company, to be held later today, by the chairman, Nicholas Mustoe:

"I am pleased to report that we have continued to build upon the positive momentum achieved in 2017, which was a year of significant strategic progress for Big Sofa. Most notable, was the transformation of our client base through the securing of global partnerships with multinationals such as Ipsos and P&G. These relationships are now coming to fruition as we fully embed Big Sofa's platform, securing larger and more diverse projects which, in turn, are increasing our revenue visibility. There is significant scope within our core client base to generate material revenue growth as our technology becomes central to their consumer insight processes.

In the first half of 2018, our order book of work commissioned reached nearly £1 million, which represents a 91% increase on the same period last year. This has been broadly driven by an increase in the average project size, with these larger projects starting to give more visibility over future revenues. While many of these projects are pilots, the size of the pilots provide an indication as to the potential full scale commercial opportunities for Big Sofa in the medium term. We believe the increase in the average project value indicates a deepening of our existing customer engagement, in addition to winning successful partnerships with strategic new customers. 

In March 2018, we received an investment from Ipsos, one of our largest customers, which further validates the business, our underlying technology and the broader potential of video analytics. This has enabled the Company to continue to develop our owned-IP, which is central to Big Sofa becoming a SaaS-based business. To this end, we have already successfully secured subscription revenues from the likes of Target and 84.51˚, which we are looking to build upon and thus gain enhanced visibility over future earnings.

Furthermore, we continue to progress the productisation of our solutions, with our market offering now including: Video Observer, Video Manager and Video Stories, which we believe have long term potential to generate high margin recurring revenues.

Significant improvements have also been made to Big Sofa's platform to increase its robustness, scalability and accessibility, ensuring we are able to deploy our technology globally and enable our clients, which typically are large multinationals, to extract maximum value from their video content anywhere in the world.

The board is positive about the medium term trading prospects of the Company as we build upon our existing client relationships, forge new ones, invest further in our technology and IP, and leverage our broadening product stack to generate material revenues as we continue to see the proliferation of video for use in consumer insight."

Enquiries

About Big Sofa Technologies Group plc

Big Sofa is a B2B technology business servicing the marketing and consumer insight industries with video analytics.

Our software platform collates, analyses and organises large volumes of raw/unstructured video content enabling companies to perform detailed and sophisticated consumer insight analysis; and make genuine use of their video content.

Until recently, video has been difficult and expensive to capture, upload, store, manage and analyse as a consumer insight tool. However, proliferation of smart phones has empowered consumers to speak directly to brands resulting in an evolution of consumer insight and data analytics techniques, with video emerging as a key platform in a massive $33 billion consumer research market.

Big Sofa's shares are admitted to trading on the London Stock Exchange's AIM market under the ticker BST.L.

To find out more, visit www.bigsofatech.com

Follow us on twitter at @bigsofatech