Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

ATTRAQT Group surges as top line goes ballistic after Fredhopper acquisition

The Fredhopper acquisition has transformed the business
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

View full ATQT profile View Profile

Attraqt Group PLC Timeline

Big Picture
July 09 2018
November 14 2017

Related Articles

August 20 2018
One of the orders will be fulfilled over the next 18 months, the other over the current financial year
The Internet of Things
April 30 2018
Richard Kilsby, the non-executive chairman of Telit, said that the early signs of changes made, especially to the group's activities and cost base, have led to positive operational progress since the beginning of 2018
Initial public offering
June 26 2018
The timing and ability of the group to realise its investments in partner companies is subject to inherent uncertainty due to numerous factors. The company is looking to change its business model a bit to become a financial supporter of companies looking to float or execute a trade sale

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use