D4T4.L Regulatory News (D4T4)

8 April 2020

D4t4 Solutions plc

Year end trading update

D4t4 Solutions Plc (AIM: D4T4, "the Group", "D4t4"), the AIM-listed data solutions provider, provides the following trading update for the year ended 31 March 2020.

Group revenue and adjusted pre-tax profit are expected to be £21.7 million and approximately £5.0 million respectively.

Significantly as the Group executes its strategy to move from providing perpetual licenses to recurring SaaS (software as a service) contracts, the amount of recurring revenue increased to 46% of the total Group revenue, up from 29.6% in the year to March 2019. This represents a 31% growth in absolute terms on the previous year, with further scope to grow this key metric.

Cash generation has been strong, which has resulted in an increase in year end cash to approximately £12.7 million (2019: £11 million).

Group revenue and profitability are expected to be behind earlier expectations as moving customers from one-off perpetual license contracts to recurring SaaS contracts takes longer to implement and revenue is recognised over a longer period. However, several recent contract wins have been secured on a multi-year "as a service" basis, providing D4t4 with additional recurring revenue visibility over the next three years.

Despite the current extraordinary circumstances caused by the outbreak of COVID-19, the Group made further significant commercial progress in the final quarter with a number of new contract wins with both new and existing clients. They include three major new contract wins: one with a global telecommunications company headquartered in APAC and two within the banking and financial services sector in the Americas. These have been secured since the update provided on 14 January 2020.

Regarding COVID-19, the welfare of the Group's staff and customers remains the Board's priority. D4t4 has been taking all appropriate action to mitigate the impact of COVID-19 in line with local government advice, including moving seamlessly to a home working model as the Group temporarily closes its offices. With regards to service delivery, the Group does not expect to experience any significant interruptions in its services to customers or its distribution channels/partners as a result of the various current global restrictions.

Additionally, D4t4 has modelled and stress-tested forecasts under a range of disruption scenarios and the Board is taking all sensible measures to preserve cash. D4t4 has also agreed the provision of additional liquidity with its bank to support the Group if required.

In light of current events we are reviewing both our full year dividend payment for 2019-20 and market guidance for FY 2020-21. More information will be provided when we release our full year results in June.

Peter Kear, CEO at D4t4 Solutions, said:

"We ended the year strongly despite the current situation, securing a number of notable wins with multinational customers - significantly a number were for multi-year services.

As well as a solid cash position, the other notable financial metric was the jump in our recurring revenues from 29.6% of total revenue to approximately 46%, as we shift the business from providing our products on a perpetual / capital based sales model to providing them as a service - with the associated increase in forward visibility.

Despite the backdrop, and at the time of writing, we are upbeat about our prospects as we continue to see good levels of sales activity amongst both existing and potential new corporate clients."

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.

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About D4t4 Solutions Plc

D4t4 Solutions Plc (www.d4t4solutions.com) is ALL ABOUT THE DATA.

D4t4 Solutions Plc operates within the fast-growing data and analytics market. This market encompasses 'big data', artificial intelligence, machine learning and the business intelligence market; this market which has been estimated to be valued at U$189 billion by the global independent analyst International Data Corporation (IDC), with a projected growth of 13.2% annually until 2022 when the market is anticipated to be worth circa.U$274 billion.

The business is focused on the finance and consumer sectors. The specific areas of focus for D4t4 are data and analytics related to the real time collection of data on how consumers interact with digital channels, the management and analysis of that data and the implementation of cost-effective platforms to assist companies get real value from their data assets. Celebrus, our software product, is a customer data platform that is in a market, according to research by the Customer Data Platform Institute (CDPI), that is expected to grow from £300m in 2016 to £1bn in 2019-20. 

We service clients in 22 countries. We are energetically focused on data platforms that enable clients who operate within the financial services, retail and consumer sectors to get the most from their data. From capture, through to management and analysis, we provide comprehensive products and services that drive value from our clients' information assets.

We are accredited to ISO27001: Information Security Management.

To find out more, visit www.d4t4solutions.com