Last checked at 18 Jun 2019 07:00
18 June 2019
GetBusy plc
Notice of results and product-based segmental reporting
GetBusy plc (AIM: GETB) ("GetBusy" or "the Company" or "the Group"), a developer of document management and communication software products, is pleased to announce that it will report its results for the half-year ending 30 June 2019 on Tuesday 23 July 2019. Going forward, following a review of its businesses, the Group will report segmental performance based on individual products or product groups.
The Group presently comprises three software products, being two 'Document Management' products (Virtual Cabinet and SmartVault) and one 'Communication' product (GetBusy). Given that the majority of the Group's employees are focused on individual products and that the strategy, financial objectives, internal reporting and capital allocation for each product differ, the Board believes that it would provide better information to shareholders by aligning its reporting to that structure rather than geographical territories, as the Group has done to date.
The Document Management group of products comprises:
Virtual Cabinet
· Nature: Desktop document management, workflow and cloud portal tool
· Customer base: Over 42,000 users in the UK, USA, Australia and New Zealand
· Financial objective: Sustained growth in profit and cash generation
· 2018 revenue: £7.6m (18% growth at constant currency)
· 2018 Adjusted EBITDA: £2.4m (29% growth)
SmartVault
· Nature: Cloud document management platform and portal for SMEs
· Customer base: Over 19,000 users in the USA and the UK
· Financial objective: Sustained growth in high quality recurring subscription revenue
· 2018 revenue: £3.3m (20% growth at constant currency)
· 2018 Adjusted EBITDA: £(0.7)m (8% improvement)
The Communication division comprises a single product:
GetBusy
· Nature: Public beta B2B communication app with viral potential
· Customer base: Potentially large addressable market with first active, adopted users
· Financial objective: Cautious investment in product development and product-market fit
· 2018 revenue: £nil
· 2018 Adjusted EBITDA: £(1.0)m (12% improvement)
Daniel Rabie, CEO of GetBusy, comments:
"Presenting our results in this revised format, which reflects the existing management structure of the Group, enables investors to understand the financial dynamics and value of each business in a clearer and much more intelligent way than our previous territory-based reporting.
"We are fortunate to have three fantastic products within our portfolio, each with its own value drivers and at its own stage in the product lifecycle.
"In Virtual Cabinet we have a highly cash-generative asset that has demonstrated substantial operational leverage through recurring revenue growth and operational efficiencies. SmartVault is a rapidly-scaling SaaS business that is opening new addressable markets and delivering very favourable return on investment. And GetBusy is our investment for the future, creating a communication product with viral potential that has shown encouraging early demand.
"We anticipate that these changes will provide our investors with an enhanced understanding of the strategy and opportunity for each business in the portfolio, as we pursue our aim to deliver long-term sustainable growth."
Restated segmental reporting
The table below shows the Group's 2018 and 2017 unaudited segmental analysis on the revised basis.
2018 |
| Document Management | Communication |
Corporate and Central £'000 |
| |
|
|
Virtual Cabinet £'000 |
SmartVault £'000 |
GetBusy £'000 |
Total £'000 | |
Recurring revenue |
| 6,242 | 3,226 | - | - | 9,468 |
Non-recurring revenue |
| 1,314 | 83 | - | - | 1,397 |
Revenue |
| 7,556 | 3,309 | - | - | 10,865 |
Cost of sales |
| (205) | (365) | - | - | (570) |
Gross profit |
| 7,351 | 2,944 | - | - | 10,295 |
Sales, general and admin costs |
| (4,533) | (2,673) | (52) | (1,519) | (8,777) |
Development costs |
| (443) | (987) | (922) | - | (2,352) |
Adjusted EBITDA |
| 2,375 | (716) | (974) | (1,519) | (834) |
Capitalisation of development costs |
|
|
|
|
| 412 |
Depreciation and amortisation of owned assets |
|
|
|
|
| (317) |
Share option costs |
|
|
|
|
| (297) |
Demerger, flotation and other non-underlying costs |
|
|
|
|
| (164) |
Other finance income / (costs) |
|
|
|
|
| (5) |
Loss before tax |
|
|
|
|
| (1,205) |
|
|
|
|
|
|
|
2017 |
| Document Management | Communication |
Corporate and Central £'000 |
| |
|
|
Virtual Cabinet £'000 |
SmartVault £'000 |
GetBusy £'000 |
Total £'000 | |
Recurring revenue |
| 5,239 | 2,721 | - | - | 7,960 |
Non-recurring revenue |
| 1,203 | 131 | - | - | 1,334 |
Revenue |
| 6,442 | 2,852 | - | - | 9,294 |
Cost of sales |
| (170) | (489) | - | - | (659) |
Gross profit |
| 6,272 | 2,363 | - | - | 8,635 |
Sales, general and admin costs |
| (3,824) | (2,395) | - | (1,156) | (7,375) |
Development costs |
| (612) | (746) | (1,111) | - | (2,469) |
Adjusted EBITDA |
| 1,836 | (778) | (1,111) | (1,156) | (1,209) |
Capitalisation of development costs |
|
|
|
|
| 259 |
Depreciation and amortisation of owned assets |
|
|
|
|
| (119) |
Share option costs |
|
|
|
|
| (105) |
Demerger, flotation and other non-underlying costs |
|
|
|
|
| (911) |
Other finance income / (costs) |
|
|
|
|
| (31) |
Loss before tax |
|
|
|
|
| (2,116) |
|
|
|
|
|
|
|
ENDS
GetBusy plc
Daniel Rabie (Chief Executive Officer) +44(0) 845 166 1165
Paul Haworth (Chief Financial Officer) +44(0) 845 166 1165
Grant Thornton UK LLP (Nomad)
Philip Secrett / Jamie Barklem / Seamus Fricker +44 (0)20 7383 5100
Liberum Capital Limited (Broker)
Bidhi Bhoma / Cameron Duncan +44 (0)20 3100 2000
Walbrook PR (UK PR & IR adviser)
Paul Cornelius / Nick Rome / Sam Allen +44(0)20 7933 8780
getbusy@walbrookpr.com
About GetBusy
GetBusy is a global Document Management and Communication software business that provides highly secure forms of digital document distribution, workflows and client chat. Over 1.2 million users are now registered to share information through GetBusy's award-winning online client portals.
Further information on the Group is available at www.getbusy.com/about/investors.