Microgen PLC Trading Update and Notice of Results (2365K)
July 06 2017 - 1:00AM
UK Regulatory
TIDMMCGN
RNS Number : 2365K
Microgen PLC
06 July 2017
6 July 2017
MICROGEN plc ('Microgen' or 'Group')
TRADING UPDATE AND NOTICE OF RESULTS
Ahead of announcing Interim Results for the six months ended 30
June 2017 on 24 July 2017, Microgen (MCGN.L), a leading provider of
business critical software and services, today issues the following
update on trading for the financial year to date.
The Group has made excellent progress in the first half of 2017
resulting in a financial performance ahead of the Board's original
expectations for the period whilst maintaining margins consistent
with the prior year. The Group's two businesses are successfully
executing their declared strategy with Aptitude Software delivering
strong organic growth and Microgen Financial Systems successfully
continuing on its transition towards a business focused on the
Trust & Fund Administration ('T&FA') market.
A key highlight for the Group is the continued new business wins
that have driven growth in Aptitude Software's recurring revenue
base. Since 30 June 2016, the recurring revenue in Aptitude
Software has increased 42% to GBP15.0 million as at 30 June 2017
(H1, 2016: GBP10.6 million and 31 December 2016: GBP12.6 million).
There has also been exceptional growth in demand for Aptitude
Software's implementation services in the first half of the year as
a number of clients progress towards going live with the Aptitude
Revenue Recognition Engine ('ARRE'). Upon completion of the half
year the Board has reviewed the on-going demand for Aptitude
Software's implementation services and, whilst clients'
requirements continue to evolve, the Board is now confident that
the exceptional level of demand experienced in the first six months
of the year will continue throughout 2017, leading to a financial
performance for the Group significantly ahead of the Board's
expectations for the year.
Opportunities for Aptitude's existing software and its new
products provide the business with confidence for future years.
Partners are becoming an increasingly important channel for new
business, and as they provide a growing proportion of resources for
new implementations, and as a number of the larger ARRE projects
are completed, the exceptional level of demand for services
experienced in 2017 is expected to moderate in 2018.
Microgen Financial Systems has maintained its focus on the
T&FA market within the wealth management sector. The
acquisition of Primacy Corporation in February 2017, a competitor
in the T&FA market, represented the fifth acquisition since
December 2014 and further strengthens the position of the business
in this market. As a result of this focus T&FA revenues now
represent approximately 60% of Microgen Financial Systems' H1 2017
revenue (H1, 2016: 51%), compared to 33% at the beginning of this
transition in 2014.
Contacts
Ivan Martin, Chairman 020-7496-8100
Philip Wood, Chief Financial Officer
James Melville-Ross / Darius Alexander 020-3727-1000
FTI Consulting
This information is provided by RNS
The company news service from the London Stock Exchange
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