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ATTRAQT Group surges as top line goes ballistic after Fredhopper acquisition

The Fredhopper acquisition has transformed the business
E-commerce
The company has increased spend on some aspects of the business in order to mitigate potential future risk as the e-commerce market evolves

Online merchandising specialist ATTRAQT Group plc (LON:ATQT) said the planned cost savings from the integration of Fredhopper have been delivered.

The integration was achieved without disturbing sales momentum, with sales in the first half soaring to £5.45mln from £1.68mln the year before, while recurring revenue practically doubled to £4.7mln from £1.6mln.

Annualised monthly revenue in June shot up 380% to £16.4mln from £3.4mln the year before.

The average value of new contracts improved to £54k from £38k in the first half of 2016.

The company now has more than 230 clients.

Adjusted underlying losses (LBITDA) narrowed to £0.5mln from a loss of £0.8mln the year before, though the loss before tax widened to £3.1mln from £0.9mln the previous year, as administrative expenses increased to £7.1mln from £2.4mln.

Cash at the end of June stood at £2.7mln, up from £1.8mln a year earlier.

Benefits from economies of scale

André Brown, the chief executive of ATTRAQT, said the group is already reaping the benefits of the increased scale and improved access to the enterprise retail market that the Fredhopper acquisition brought with it.

READ: ATTRAQT Group upbeat about integration of Fredhopper

"We continue to gain traction with leading retailers in the UK, Europe and North America, having signed significant new logos in the period including Hunter Boots, Specsavers and The White Company. At the same time, our proposition remains key to our current customers with a significant number of upgrades and renewals,” Brown said.

"The momentum has continued post-period with the signing of the second largest logo in the group's history, plus contracts across a variety of territories. This momentum, underpinned by high recurring revenue and a strong pipeline for new business in the second half of the year, gives us confidence in the ongoing success of ATTRAQT for the remainder of 2017," he added.

The company said it has some new technology developments that should be unveiled before the end of the year, including its new data import application program interface and a new advanced reporting module.

The shares were up 4.5% to 50.7p in the first half hour of trading following the release of the results.

WATCH: Fredhopper is a "very good" acquisition for us, says ATTRAQT's Brown

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