Results

GetBusy plc

06/18/2019 | Press release | Distributed by Public on 06/18/2019 00:26

Notice of results and segmental reporting change

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

[email protected]

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.