Embargoed Release: 07:00hrs Thursday 27 January 2010
SOPHEON PLC
("Sopheon" or the "Company")
TRADING UPDATE
Sopheon plc, the international provider of software and services that improve
the financial return from innovation and product development investments,
announces significant progress in year-on-year operating performance. Total
revenues for the year ended 31 December 2010 are expected to exceed market
expectations of
£10 million (2009: £8.3 million). Early indications are that the Group's EBITDA
result will also comfortably exceed market expectations of £900,000 (2009: £
195,000 EBITDA loss).
Total license transactions including extension orders were 58 in 2010 (2009:
48) and license income rose to more than 37% of revenue (2009: 32%). Just over
60% of the value of new orders (excluding recurring revenues) in 2010 was
derived from our existing customers, compared to 70% in 2009. This shift shows
that new client acquisition is rising, reinforcing the relevance of Sopheon's
solutions in the current global economy. At the same time, the high level of
add-on business from existing customers underlines both the inherent value of
our solutions, and the extended business opportunity for Sopheon from each new
customer we sign.
Going into 2011 we are encouraged by the strength of our sales pipeline, which
remains very active. We have responded to escalating customer and market
demands by positioning Sopheon to take advantage of the improving business
climate. This has included a controlled expansion of staff levels.
Nevertheless, our trading performance remains sensitive to the timing, value
and profile of individual sales events, and we consequently approach every
investment decision with an extra measure of prudence. To facilitate confident
execution of our strategy, and maintain the ability to react rapidly to new
market opportunities, in December we effected a major improvement to our
working capital position. This involved negotiating changes to the maturity
profile of the Group's convertible loan stock, and the introduction of $2.7
million of additional working capital from our existing corporate lenders,
BlueCrest Capital.
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 2010 on 24 March 2011.
Barry Mence, Chairman, commented:
"We are very pleased to show notable improvement in our performance during
2010. It is not yet clear that the effects of the global crisis on our markets
are fully behind us, but we are encouraged by early indications for the coming
year. We are entering 2011 with both the strategic and the financial strength
to move forward with confidence and optimism."
For further information contact:
Barry Mence, Chairman Sopheon plc Tel : + 44 (0) 1483 685 735
Arif Karimjee, CFO Sopheon plc Tel : + 44 (0) 1483 685 735
Nicholas Nelson / Kirsty Hansard Communications Tel : + 44 (0) 20 7245 1100
Corcoran
Floor van Maaren Citigate First Financial Tel : + 31 (0) 205 754 010
Sarah Jacobs Seymour Pierce, Nominated Tel: +44 (0) 20 7107 8000
Adviser
Richard Redmayne Seymour Pierce, Broker Tel: +44 (0) 20 7107 8000
About Sopheon
Sopheon (LSE: SPE) is an international provider of software and services that
help organisations improve the business impact of product innovation. Sopheon's
solutions automate and govern the innovation process, enabling companies to
increase revenue and profits from new products. Sopheon's solutions are used by
industry leaders throughout the world, including BAE Systems, BASF, Corning,
Electrolux, Honeywell, Novartis and SABMiller. Sopheon is listed on the AIM
Market of the London Stock Exchange and on the Euronext in the Netherlands. For
more information, please visit www.sopheon.com.
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