i-nexus Global PLC Trading Update (9400Q)

TIDMINX

RNS Number : 9400Q

i-nexus Global PLC

24 October 2019

24 October 2019

i-nexus Global plc

("i-nexus", the "Company" or the "Group")

Trading Update

i-nexus Global plc (AIM: INX), a provider of cloud-based Strategy Execution software solutions designed for the Global 5000, provides an update on trading for the year ended 30 September 2019.

-- As indicated in the July 2019 update, the Board expects Total Recognised Revenue ("TRR") for the year to be below original market expectations

-- However, the Board expects both the EBITDA loss and the Loss for the Year to be in line with expectations as a result of careful cost management

-- Pleasingly, in the reported period the group benefitted from a substantial increase in upsells to existing clients, which has helped offset slower than expected new deal conversion, in addition to the previously reported customer churn

-- In September 2019 two additional products were soft launched; Pulse and Advisor, designed to improve data entry and strategic insight for customers

The Board expects to report TRR for FY19 of approximately GBP4.8 million (FY18: GBP4.7 million). Careful management of the rate of investment in the second half of the year means the Board expects to report EBITDA and PBT in line with prior market forecasts at a loss of approximately GBP4m and GBP4.2m respectively.

Period end cash & cash equivalents are expected to be GBP1.5 million (FY18: GBP6.9 million). High levels of anticipated customer renewals in the first half of FY20, combined with a continued focus and close monitoring of costs, mean the Board is comfortable with its current cash reserves. However, the Board will continue to monitor cash spend closely and take action if budgeted levels of Revenue for the current financial year are not achieved.

The Company exited the year with Monthly Recurring Revenue ("MRR") of GBP340k (FY18 GBP335k). MRR from upsells within our existing client base during the year were in excess of GBP35k, which compares favourably to the FY18 upsell total of GBP10k. This improvement also supports the Company's expectation that an increase in service revenue provides opportunities to add incremental MRR within existing accounts, driven by the work of the customer success team.

The Company expects to announce results for the year ended 30 September 2019 in early December 2019.

Simon Crowther, Chief Executive, of i-nexus Global plc, "As already reported, a combination of factors have resulted in sales being weaker than originally anticipated, leading to a disappointing revenue result. While this is frustrating, we have taken swift remedial action and, as a result, delivered EBITDA in line with our prior expectations.

"Careful investment and considered strategic initiatives on many other fronts have considerably strengthened all aspects of the business. Of particular note, advancements in our product, our Channel Partner programme and our increased reach within our existing client base are very positive."

For further information please contact:

 
 i-nexus Global plc                          Via: Alma PR 
  Simon Crowther, CEO 
  Alyson Levett, CFO 
 N+1 Singer (Nominated Adviser and Broker)   Tel: [phone] 
  Lauren Kettle (Corporate Finance) 
  Tom Salvesen (Corporate Broking) 
 Alma PR                                     Tel: [phone] 
  Caroline Forde / Josh Royston 
 

About i-nexus Group plc

i-nexus supports some of the largest global companies in running, improving and changing their businesses through the provision of a scalable, enterprise-grade, cloud-based Continuous Improvement ("CI") and Strategy Execution ("SE") software platform. The platform is in use at global blue-chip businesses, predominantly based across the US and Europe, helping customers execute key strategic goals throughout all levels and divisions of their organisations.

The Group's software supports Hoshin Kanri, a strategy development methodology first introduced in the 1960s in Japan and born out of lean, six sigma and operational improvement theory. Hoshin Kanri (directly translated as "direction execution") is a systematic planning, implementation and review methodology which, when implemented, aims to ensure that the strategic goals of a company are properly communicated to all employees and that they drive progress and action at every level of the business.

i-nexus is headquartered in Coventry, UK with a sales office in New York, and employs over 90 staff.

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October 24, 2019 02:01 ET (06:01 GMT)