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GetBusy's losses widen despite stronger revenues
Software developer GetBusy saw losses widened in 2017, as costs associated with its demerger from ASX-listed firm Reckon and flotation expenses resulting from the firm's admission to the AIM-market of the London Stock Exchange August offset improved revenues.
GetBusy's pre-tax loss widened 10.53% to £2.1m for the year ended 31 December, after the one-off costs from its IPO, in addition to an increase in sales and general expenses, expanded 18% to £7.2m, amid continued investment.
On the plus side, revenue did grow 20% to £9.3 million after GetBusy saw a 23% rise in recurring subscriptions to £8m, meaning that 86% of the group's total revenue moving forward was made up of recurring streams.
"In the coming year we expect continued growth in high-quality subscription revenues from Virtual Cabinet and SmartVault in the UK, US, Australia and New Zealand," said chairman Dr Miles Jakeman.
GetBusy, formed as a result of the document management and software wing's split from Reckon, was listed to London's AIM in August through a raising of £3m and, as of 31 December, had a cash balance of £2.81m versus the nil balance held a year earlier.
Daniel Rabie, chief executive of GetBusy, said, " We've built momentum across the business: we grew our recurring revenue by 23%, exercised disciplined cost control, successfully completed the demerger and IPO and closed the year with £2.8m of cash."
"Customers love our products because they make them more productive, efficient and compliant and we have a customer-focused culture. In 2018 we expect those strong fundamentals to contribute to continued growth in high-quality subscription revenues from our existing products," he concluded.
As of 1420 GMT, shares had dropped 5.75% to 34.40p.