ActiveOps It is in the area of attention for management process automation software. This is a fast-growing sector and Active Ops has a relatively long track record. This shows that once customers are acquired, spending will increase over the years.
ActiveOps wants to win the trust of more customers by becoming a publicly traded company. Existing shareholders sold their shares in that arrangement, but management and employees still own significant shares.
We have new customers to target and management is adding partners who can help add them to direct sales.
Stock prices rose from 168p to 190p in the first few days of joining AIM. This type of software company has a good reputation, with Active Ops trading more than six times more revenue. It seems to be well received in the short term.
ActiveOps (LON: AOM)
Management process automation software
Levitation date: March 29, 2021
Issue price: 168p
Procurement amount: None
Float costs: £ 1.6m
Market capitalization: £ 119.8m
Nominated Advisor: Investec
What is it for?
ActiveOps, a management process automation software provider, helps organizations improve the efficiency and consistency of their back office operations. This software allows clients to manage a complex set of problems.
The core product is Control iQ. It’s a workforce optimization product that provides data integration, forecasting, and planning. WorkiQ was acquired to integrate into the Workware + platform to provide employee productivity monitoring.
Management process automation is expected to be worth £ 6.3 billion in 2023, and ActiveOps covers segments including banks and insurers worth around £ 750m annually.
One example of a client is a UK clearing bank that uses software to manage and reduce costs. UK productivity increased by 12% and India’s offshore operations increased by 18%. Health insurance companies in the United States have saved $ 7 million annually by using this software.
ActiveOps is generating revenue growth from a combination of additional customers and increased spending by existing users.
ActiveOps has a strong balance sheet and £ 75.7m in cash was paid to existing shareholders after deducting costs.
With the acquisition of OpenConnect for £ 4.95m in 2019, ActiveOps did not need to raise cash. The specific purpose of this transaction was to acquire WorkiQ software integrated into the company’s Workware + platform. The rest of OpenConnect sold for £ 14.6m at the end of last year.
That is, net cash at the end of January 2021 was £ 8 million. This will give you enough cash to grow your business.
Revenue for the year to March 2020 was £ 20.4 million. ActiveOps has been losing money for the past two years, but was approaching the break-even point in the six months to September 2020. Prior to the profit and loss figures.
Interim revenue improved from £ 9.42 million to £ 978m and losses were more than halfd to £ 557,000. This is before the tax-deducted £ 1.55 million profit on deprecated activities.
SaaS revenue was at record levels in the third quarter, but training and implementation revenue, which was curtailed by the initial blockade, is recovering.
North America is a relatively small revenue contributor, accounting for 19% of the total, and could be even more important. The Asia Pacific region generates 26% of revenue and Europe generates 55%.
Sean Finnan (Independent Part-time Chairman)
Annual fee: £ 65,000
Richard Jeffrey (Chief Executive Officer)
Annual salary: £ 200,000
Paddy Deller (Chief Financial Officer)
Annual salary: £ 170,000
Mike McLaren (part-time independent)
Annual fee: £ 45,000
Hillary Light (independent part-time)
Annual fee: £ 45,000
All shares of the placement have been sold by existing shareholders. Calculus Capital reduced its stake from 29.3% to 6.06% and Neil Bentley reduced his stake from 21.4% to 7.1%. Paul Moloney reduced his stake from 6.9% to 0.35%, and the Hausild family sold all of its stake.
CEO Richard Jeffrey sold his shares and reduced his shares to 9.83 million. Sean Finnan also sold the stake, which was purchased by three other directors who did not previously own the stake. Other employees sold the stock.
BlackRock has a 5.78% stake, Schroders has a 6.28% stake, and Canaccord Genuity has a 7.95% stake.
New AIM Admission: ActiveOps-UK Investor Magazine
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