D4T4.L Regulatory News (D4T4)

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. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

D4t4 Solutions Plc

'ALL ABOUT THE DATA'

'SOLUTIONS FOR COMPLEX DATA PROBLEMS'

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

Year End Trading Update

London THURSDAY 18th APRIL 2019 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 2019 which are expected to be released in the week commencing 24th June 2019.

Highlights:

Ø Group revenue of c. £25m

Ø Adjusted profit* expected to be slightly ahead of market expectations

Ø Group margin remains consistently strong

Ø Strong balance sheet net cash position £11m

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

* Adjusted for amortisation of acquired intangibles, share based payment charges and foreign exchange losses.

Peter Kear, Chief Executive of D4t4 commented:

"Our strategy continues to deliver and is reflected in our strong overall growth. At the same time we continue to innovate our product, grow geographically and deepen our relationships with our strategic partners. The business enters the new financial year in robust shape after closing a number of significant contracts in the second half year, these contracts will have an impact on 2018-19 and on subsequent years, and we are encouraged by the opportunities and outlook for the business in the coming year. Consequently, as a Board we are confident of delivering results in line with expectations for the financial year ending March 2020."

2018-19 overview

The Group has over the last four years focused on increasing its emphasis on data collection and data management.

During the last financial year the Company has made solid progress with its strategic goals whilst growing overall revenue and increasing profits through the delivery of increased value for our clients from their customer data.

Our focus on being the most comprehensive real time customer data collection platform in the market continues with the launch of our new version 9 Celebrus customer data platform (CDP) software. This, coupled with the increasing demand for our hybrid analytics cloud data platform solutions, leads the Board to believe that the coming year will be a strong one for the Group.

To date we have experienced no material impact from the UK's Referendum decision to leave the EU, though this may change as negotiations continue. As an international business working with both UK and multinational companies we believe in our strategy and the Board remains confident that the business and its people have the flexibility and foresight to meet any challenges as and when they arise.

Trading performance

Reported Group revenue for 2018-19 is expected to be c.£25m with Group profits slightly ahead of market expectations.

Data platforms revenue is up year on year reflecting the strength of the demand in the market for our hybrid analytics cloud solutions.

We are delighted to report that we continue to benefit from the strong demand for our Celebrus software products where we have seen a change in the mix between our traditional perpetual license style business and recurring revenue models with an increase in the demand for the recurring revenue version of our products. Even with this change, which remains an evolving trend, we have delivered growth in top line sales. Our opportunity pipeline looks strong and we expect to see both a further increase in top line license sales and recurring revenue growth in 2019-20.

Our Recurring income stream is expected to report solid growth for the year just ended reflecting the increase in both the data platform business and ongoing new software sales and it is also pleasing to report that this segment returned a trading performance ahead of budget.

IFRS15

The adoption of IFRS15 has been evaluated and does not have a significant effect on the ongoing results of the organisation, as previously reported. However, the implementation of the standard did have a one-off impact on the revenue and profits realised for the years ending 31.3.2018 and 31.3.2019. There has been a requirement for an adjustment of £1.67m of revenue and £1.08m of profit from year ended 31.3.2018 into year ended 31.3.2019 due to the change of revenue recognition policies following the application of this standard. For detail see the half year results RNS announcement dated 27.11.2018

Financial position

Net cash at the end of March stood at £11m (FY2018: £4.6m). The Group 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 2018-19 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 D4t4 is well-positioned in its key markets. The current revenue visibility, order book and pipeline of opportunities all bode well for the future.

The business enters the new financial year in robust shape, and we are encouraged by the opportunities and outlook for the Group over the coming year. As a board we are confident in delivering results that will be in line with expectations for the financial year 2019-20