D4T4.L Regulatory News (D4T4)

Immediate release

Wednesday, 12 April 2017

D4t4 Solutions Plc

'ALL ABOUT THE DATA'

(the "Company, "Group" or "D4t4")

Trading update

D4t4 Solutions Plc (AIM: D4t4), specialists in data solutions, is pleased to provide the following trading update, ahead of the publication of the Group's final results for the financial year ended 31 March 2017 which are expected to be released in the week commencing 26 June 2017.

Highlights:

Ø Profit (excluding the FX gain) expected to be ahead of current market expectations

Ø Celebrus software product sales grew significantly year on year - accounting for over a quarter of Group sales

Ø Group margin enhancement reflecting strong growth in software and recurring revenues

Ø Strong cash generation - strengthened net cash position

Ø D4t4 enters the new financial year in robust shape

Ø Encouraging pipeline & opportunities ahead

Ø Remain confident in our strategy, prospects and future performance

Peter Kear, Chief Executive of D4t4 commented:

"Our strategy continues to deliver and is reflected in strong profit growth and increasing gross profit margins. The business enters the new financial year in robust shape and we are encouraged by the opportunities and outlook for the business in the coming year. Consequently, as a Board we are also confident in delivering our expectations for the financial year ending March 2018."

2016 overview

The Group has over the last two years focused on increasing its emphasis on data management and analytics and in our successful re-branding exercise completed in July 2016. In the last financial year the Company has made good solid progress with its strategic goals growing software revenues and associated services.

To date there has been no material impact from the UK's Referendum decision to leave the EU, albeit this is subject to any items that might change in the coming 24 months as the Government negotiate the UK's exit from the European Union. As an international business working with UK and multinational companies we believe in our strategy and the Board remains confident the business and its people have the flexibility and foresight to meet any challenges as and when they arise.

Trading performance

We are delighted to report that we continue to benefit from the upward demand for our Celebrus software products and this has resulted in these sales last year growing by 48%. Celebrus software is a key offering and now accounts for 28% of Group revenue compared to 18% in the prior year. This change in our business mix has significantly benefitted our gross profit margins, with profit expected to be ahead of market expectations on this basis and further improved by the movement in foreign exchange rates.

Reported Group revenue for FY17 is expected to be c. £17.7m. Our Recurring income stream reported a change in its mix of client business reflecting the Celebrus growth. Demand for managed private cloud and software Licence maintenance services business was solid and this segment returned a trading performance in line with budget. Projects revenue is down year on year reflecting the impact of delays to the commencement of certain projects, particularly in the US due in part to the nervousness and uncertainty leading up to and post the US presidential election; following 'the first 100 days' confidence appears to be returning, and those delayed decisions by both existing and new clients are starting to move forward. In addition, within our legacy business, we witnessed one of our major Japanese clients who recently had gone through turbulent times reduce their overall group spending globally which subsequently impacted our work scheduling during the year.

Financial position

Net cash at the end of March stood at £5.1m (FY2016: £3.4m). The Company continues to have a solid balance sheet and to generate cash.

Dividend policy

We remain committed to a progressive dividend policy and as a Board we expect to declare an increase in the dividend payable for the 2016 financial year which is in line with our previously stated intentions.

Summary outlook

There will always be macroeconomic factors that no business can fully mitigate including currency volatility and more recently the possible wider potential implications of Brexit.

We remain confident in the Group's strategy; our underlying business is delivering against our key KPIs and is performing well and with the renewed confidence from our US clients D4t4 is well-positioned in its key markets. The current revenue visibility, order book and pipeline of opportunities bodes well for the future.

In summary, the business enters the new financial year in robust shape and we are encouraged by the opportunities and outlook for the business in the coming year. As a result, we remain confident that we can achieve the current management expectations for the financial year 2017/2018.

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.