4th Mar 2020 10:32
(Alliance News) - Shares in Attraqt Group PLC fell Wednesday as it lowered 2020 expectations due to a shortfall in bookings.
Attraqt, which makes technology to enhance online shopping, said macroeconomic and political uncertainty hampered bookings in the second half of 2019.
It has a "strong" pipeline in new opportunities in 2020, but London-based Attraqt has been unable to close enough deals in January and February to offset the slowdown in the second half of 2020.
"Whilst we continue to be comfortable with our expectations for new bookings in 2020, with around 20% year-on-year growth, given the revenue recognition profile of software-as-a-service deals we are prudently reducing our market expectations for the full year at this early stage," said Chief Executive Luke McKeever.
Shares were 13% lower on Wednesday morning in London at a price of 34.00 pence each.
In 2019, Attraqt's revenue rose 13% to GBP19.4 million. Software-as-a-service revenue was 16% higher at GBP17.7 million.
The company posted a pretax loss of GBP4.4 million, widened from GBP2.7 million the year before. The loss expanded due to GBP1.5 million of exceptional items related to the Early Birds purchase in May 2019.
"It has been a year of considerable operational progress for the group. We are pleased to have delivered a transformational acquisition, which has allowed us to expand and upgrade our product architecture, alongside clear progress against our strategy as demonstrated by our key performance indicators," said CEO McKeever.
"The fact our clients continue to sign multi-year renewals with us demonstrates the ongoing value of our offering and an appreciation for our technology. The post-period end three-year renewal of our largest client is a strong validation of how far our technology and ability to innovate has developed over the period."
"We have a huge opportunity ahead of us, and we are confident we can capitalise on it through the effective execution of our strategy," he continued.
"The work that our teams and partners have put in this past year means we are now well-positioned to ramp up our momentum going into the next period and expect to see double-digit growth in our 2020 exit annualised recurring revenue rate."
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
ATQT.L