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Summary
- Blue Prism Group Plc is expecting a 40% increase in revenues during FY20.
- The Company has added 490 new customers in FY20.
- Idox Plc has reported a 4% increase in the sales during FY20.
- The Company has exited its sub-scale operations in Ireland and Malta.
Blue Prism Group Plc (LON:PRSM) and Idox Plc (LON:IDOX) are technology stocks. Shares of PRSM and Shares of IDOX were down by 6.19% and 0.11%, respectively, from their last closing price (as on 19 November 2020, before the market close at 08:20 AM GMT).
Would Blue Prism Group Plc be able to reach cash breakeven in 2021?
Blue Prism Group Plc is the FTSE AIM UK 50 listed Company, which is a global leader in intelligent automation. The Company has users across the globe in more than 2,000 businesses, including Fortune 500 and public sector organizations. The key clients of the Company are shown below -
(Source: Company result)
Recent Developments – The Company will announce its financial results for the year ended 31 October 2020 on Thursday, 14 January 2021.
FY2020 trading update as reported on 17 November 2020
- The Company is expecting a 40% growth in revenues for FY20. The Company had around £310 million in Remaining Performance Obligations (RPO) as of 31 October
- The Group has witnessed a significant rise in new customers, and it has added 490 new customers in FY20 taking the total customer base above 2,000, while it was 1,677 in FY19.
- The upselling activity has also recovered, and full-year net revenue retention rate has increased to 113% in FY20 from 110% in H1 FY20.
- The Company is expecting monthly recurring revenue of around £12.8 million and annual recurring revenue (ARR) of £154 million. Closing cash balance as of 31 October 2020 is £137.6 million while it was £140.8 million as of 30 April 2020.
Recent News
On 28 September 2020, the Company announced Rachel Mooney as a Non-Executive Director with effect from 28 September 2020. Rachel will join the Remuneration Committee with effect from 1 October 2020 and will also join the Audit Committee with effect from 1 November 2020.
H1 FY20 financial highlights (ended 30April 2020) as reported on 18 June 2020
(Source: Company result)
- The revenue of the Company has shown 70% growth for H1 FY20 ended on 30 April 2020 to £68.5 million. Gross revenue retention rate remained strong at 98%.
- Regarding the financial position, the Company had a net cash balance of £140.8 million as of 30 April 2020.
Share Price Performance Analysis of Blue Prism Group Plc
(Source: EODHD/Others, chart created by Kalkine Group)
Shares of Blue Prism Group Plc were trading at GBX 1,454.00 and were down by close to 6.19% against the previous closing price (as on 19 November 2020, before the market close at 08:20 AM GMT). PRSM's 52-week High and Low were GBX 1,890.00 and GBX 795.00, respectively. Blue Prism Group Plc had a market capitalization of around £1.50 billion.
Business Outlook
The Company has performed very well during FY20 and witnessed 40% growth in its top-line demonstrating significant growth in ongoing customer commitments. The Group is exploring a potential secondary listing in the United States as a part of corporate strategy, although there is no certainty. The Company has closed the year with a strong pipeline and remained confident despite business challenges as intelligent automation is required for the recovery across all industries irrespective of its market size. The Company is highly committed to reaching cash breakeven in FY21.
How has Idox Plc managed to reduce its net debt?
Idox Plc is the FTSE AIM All-Share listed Company, which is the supplier of a specialist information management solution to public sector companies.
Recent Developments – The Company will announce its financial results for the year ended 31 October 2020 in early February.
FY2020 trading update as reported on 17 November 2020
The Company is all set to deliver another year of resilient financial performance driven by the transformation implemented in a prior financial year with good margin expansion and cash conversion.
The revenue of the Company was up by 4% to £68.0 million during FY20 ended on 31 October 2020 from £65.5 million in FY19. Recurring revenues have also shown an increase of 5% and reached £37.4 million during FY20. The Company has witnessed a significant increase in adjusted EBITDA as it has grown by 35% to £19.5 million. Adjusted profit before tax during FY20 is £10.4 million.
With regards to financial position, the Company has reduced its net debt to £16.1 million as of 31 October 2020 from £26.4 million as of 31 October 2019, bringing leverage down to 0.8x. The Company has a £35 million revolving credit facility. The Company is also willing to proceed with the final dividend for FY20.
On the operational front, the Company has completely integrated the 2019 Tascomi acquisition, which is recently rebranded as 'Idox Cloud'. The Company has exited its sub-scale operations in Ireland and Malta.
Recent News
On 27 October 2020, The Company announced that it had issued 70,897 new ordinary shares of 1 pence each admitted to trading on AIM at 8:00 AM on 29 October 2020. The total number of Ordinary Shares post Admission of this issue will be 445,040,609.
H1 FY2020 financial highlights (ended 30 April 2020) as reported on 15 June 2020
(Source: Company result)
- The sales during H1 FY20 ended on 30 April 2020 has increased by 13% to £35.1 million; similarly, recurring revenue also grew by 13% and reached £18.7 million during H1 FY20 driven by normalized revenue recognition, Tascomi and timing of UK General Election.
- Regarding the financial position, the net debt declined by 43% to £14.3 million during H1 FY20 due to strong cash performance. Net cash inflow during H1 FY20 was £25.3 million.
Share Price Performance Analysis of Idox Plc
(Source: EODHD/Others, chart created by Kalkine Group)
Shares of Idox Plc were trading at GBX 50.60 and were down by around 0.11% against the previous closing price (as on 19 November 2020, before the market close at 08:20 AM GMT). IDOX's 52-week High and Low were GBX 55.89 and GBX 24.50, respectively. Idox Plc had a market capitalization of around £214.68 million.
Business Outlook
The Company is highly cautious of Covid-19 pandemic, but it is optimistic regarding future business prospects, and it has shown confidence towards public sector markets and software solutions. Idox has not taken any advantage of any government scheme to date. The Company has continued positive momentum in FY21 as well showing strong revenue visibility. The current order book for FY21 & beyond for contracted software and services stood at £15.9 million. The Company intends to reinstate FY20 dividends which will be payable after the Annual General Meeting scheduled in the first half of FY21.
