The Group's interims show strong trading results for H1 17.
Companies: Sopheon
Software company Sopheon (LON: SPE) has released its interim results for the first half of this year, with shares up slightly in early trading.
The results highlight a 29% increase in adjusted PBT, a 9% increase in Revenue versus H1 16 and EBITDA up 11% to £3m. The Group finalised 28 software license transactions in H1 17, up from 20 in the same period last year.
Management now expects revenue for 2017 year-end of £20.3m compared to £18.4m in 2016, an increase of 10%.
finnCap and Progressive both published research notes today off the back of the Group's interims, with finnCap saying the results were in-line with expectations. The "9% revenue increase from the Group was strong, even compared with a strong H1 16, which had been boosted by a notably large deal", finnCap said.
Progressive noted interim revenue was slightly below half their full-year expectations and EBITDA just above. Both brokers' estimations remain unchanged for now.
Sopheon's Chairman, Barry Mence said:
"In addition to increasing both revenue and profits, we continue to build momentum and gain enhanced market recognition… full year revenue visibility for 2017 from contracted business and recurring revenue streams is already at $20.3m. In addition, we have a growing sales pipeline, including several blue chip companies representing major enterprise opportunities. These factors give the Board confidence in meeting our goals for the year, and as importantly, our ambition to accelerate growth in the future. Given these positive circumstances, the Board is actively considering the introduction of a dividend policy."
Currently, Sopheon's market cap is £27.5m and shares trade a PE ratio of 13x versus the industry median of 18x. Revenue CAGR over the previous 5 years has averaged 7% to 2016. Net profit also grew 300% between '15 and '16 as operating margins grew from 7% to 14% in the same period.