Trading Update and Notice of Results

RNS Number : 3085N

Microgen PLC

17 January 2019

 

microgen

www.microgen.com

                                                                               17 January 2019

MICROGEN plc ('Microgen' or 'the Group')

TRADING UPDATE & NOTICE OF RESULTS

Microgen plc (LSE: MCGN), a leading provider of business-critical software and services, has continued its progress in 2018 as illustrated by strong organic growth in Aptitude Software's on-going recurring revenue base¹ of 24%. Accordingly, the Group's overall result for the full year ending 31 December 2018 is expected to be in-line with the Board's expectations.

Aptitude Software is successfully transitioning its focus to the growing opportunity with the Aptitude Insurance Calculation Engine ('AICE') and the Aptitude Lease Accounting Engine ('ALAE'). Excellent new business progress has been achieved in 2018 with a number of successes for both of these recently launched applications. The contracts for AICE are across Asia, Europe and North America demonstrating the growing international reach of the business. Whilst the opportunity with ALAE is less material, it is particularly pleasing that a number of the contracts for this application are for Aptitude Software's software-as-a-service offering, a capability accelerated by the August 2017 acquisition of RevStream. Further new business sales of Aptitude Software's revenue recognition applications and the Aptitude Accounting Hub have also been achieved in the year. Overall, Aptitude Software's on-going recurring revenue base¹ has grown to £24.0 million at 31 December 2018, an increase of 24% for the year (31 December 2017: £19.3 million; 30 June 2018: £21.3 million).

Microgen Financial Systems has maintained its focus on the Trust & Fund Administration ('T&FA') market within the wealth management sector. This focus, coupled with the disposal of its small non-core Payments software business in July 2018, has led to revenues from T&FA representing approximately 70% of Microgen Financial Systems' continuing revenue in 2018 (2017: 62%). The T&FA on-going recurring revenue base¹ at 31 December 2018 of £9.0 million is ahead of the base at 31 December 2017 of £8.8 million.

Microgen anticipates issuing its preliminary results for the year ended 31 December 2018, reported under IFRS 15 and IFRS 16 for the first time, towards the end of March 2019.

Contacts

Ivan Martin, Chairman                                                 020-7496-8100

Philip Wood, Chief Financial Officer

Darius Alexander, FTI Consulting                               020-3727-1063

¹ The on-going recurring revenue base includes recurring revenues contracted but yet to commence and excludes recurring revenues which are currently being received but are known to be terminating in the future

 

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