30 Jan 2013 07:00
Embargoed Release: 07:00hrs Wednesday 30 January 2013
SOPHEON PLC
("Sopheon", "the Group" or the "Company")
TRADING UPDATE
Sopheon plc, the international provider of software and services for complete Enterprise Innovation Performance solutions, announces initial indications of the Group's performance in 2012.
Building on the encouraging interim results, revenues for the year ended 31 December 2012 are expected to exceed market expectations of £12 million. This compares to reported revenues for 2011 of £10.3 million. Early indications are that EBITDA will also be ahead of market expectations of £1.6 million. Furthermore, over 50% of the value of 2012 orders (excluding recurring revenues) was derived from new customers, compared to just 21% in 2011.
In parallel with this positive financial performance, Sopheon has made further strategic advances. We have continued to bring key new hires into the business, with the intent to accelerate our growth plans. Just last week, we announced a major new product release that further embeds our leadership in delivering enterprise innovation performance improvement. Earlier in 2012, the Group secured additional £1.1 million of convertible debt finance, giving us the confidence to continue execution of our expansion strategy.
In addition, we are pleased to announce today that we have acquired a long-standing German business partner. Although a small transaction, this event means we now have a direct relationship with customers in the territory, a fully incorporated German subsidiary, and a sales and delivery team which can hit the ground running. Germany is an increasingly significant market for Sopheon, representing a quarter of our European revenues in 2012. We continue to enjoy an excellent relationship with our other partners in the country.
Finally, we have shared our intent to undertake a corporate restructuring to reduce the accumulated deficit on the profit and loss account, and to consolidate shares. As we have previously noted, our intent was to implement a 2000:1 share consolidation, shortly followed by a 1:100 share split to bring the final ratio to 20:1. Following a concerted effort, we have succeeded in obtaining further details of holdings held through the Netherlands system. The results of this review indicate that it could be more appropriate to increase the initial consolidation ratio to up to 10000:1, followed by an up to 1:500 split to deliver the same ultimate final ratio of 20:1. This remains under review. We now expect to request the authorities for these changes at our 2013 annual general meeting, planned for 12 June of this year.
Financial expectations noted above are subject to the completion of the year-end financial close and audit processes. Sopheon plans to issue its preliminary results for the year ended 31 December 2012 on 21 March 2013.
Barry Mence, Chairman, commented:
"We are pleased to deliver solid growth in an economic climate that remains tough. This achievement is particularly satisfying, validating the board's decision to continue growth in staffing through 2011 and 2012. As we head into 2013, we are approaching our plans with the same mindset and ambition, tempered by a clear understanding of the need to maintain a strong financial footing."
For further information contact:
Barry Mence, Chairman | Sopheon plc | + 44 (0) 1483 685 735 |
Arif Karimjee, CFO | Sopheon plc | + 44 (0) 1483 685 735 |
Charlotte Stranner / Victoria Bates | finnCap | + 44 (0) 20 7600 1658 |
Josh Royston/ Heather Armstrong | Newgate Threadneedle | + 44 (0) 20 7653 9850 |
Claire Verhagen | Citigate First Financial | + 31 (0) 205 754 010 |
About Sopheon
Sopheon (LSE: SPE) partners with customers to provide complete Enterprise Innovation Performance solutions including software, expertise, and best-practices to achieve exceptional long-term revenue growth and profitability. Sopheon's Accolade® solution provides unique, fully-integrated coverage for the entire innovation management and new product development lifecycle. For the first time, businesses can access a single source of the truth across strategic innovation planning, roadmapping, idea and concept development, process and project management, and portfolio and in-market management. Sopheon's solutions have been implemented by over 200 customers with over 60,000 users in over 50 countries. Sopheon is listed on the AIM Market of the London Stock Exchange and on the Alternext Exchange in the Netherlands. For more information, please visit www.sopheon.com