15th Jul 2015 07:58
LONDON (Alliance News) - Kalibrate Technologies PLC on Wednesday said it expects revenue and earnings before interest, taxation, depreciation and amortisation to be in line with market forecasts for the full year, having secured revenue growth in its core markets.
The group also said it has transitioned clients over from perpetual licence deals to software-as-a-service contracts faster than anticipated.
Kalibrate, which provides software products and services to the petroleum retailing industry, said it has secured multiple contract wins in the first half of 2015, which have largely been won on a SaaS basis, offering the company greater revenue visibility, longer client relationships and higher margins.
The group's acceleration of shifting customers to SaaS deals has had a short-term impact on its revenue and cash generation for the year, Kalibrate said, but has served to push its annualised recurring revenue book up to USD21 million from USD19.6 million a year earlier. Kalibrate's order book also has increased to USD41.4 million, up 15% year-on-year.
The company said it has seen revenue growth in both its core markets and in new ones, with key contracts secured in North America and Europe in the first half, accompanied by new deals in Bosnia, Bulgaria, Chile, the Czech Republic, Ireland, Kenya, Mexico, Romania and Serbia, plus the start of a roll-out in Brazil.
"We are pleased to have delivered to the expectations set of us for this year. The past twelve months have seen us make rapid progress in our plans to secure business on new, more visible, more long-term SaaS relationships," said Kalibrate Chief Executive Bob Stein.
"2016 will see us continue to make this transition, allowing us to create a group that can deliver higher recurring revenues, even stronger client relationships and enhanced margins for the long term," Stein added.
Kalibrate shares were down 3.2% to 99.2498 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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