GetBusy PLC (LON:GETB) had a ‘very good first year on AIM’, as more people became aware of how important it is to securely file documents in a professional and safe way.
The firm – which was formed through the demerger of Aussie-listed Reckon’s document management and software business – saw subscription rates grow by 23% in 2017.
Daniel Rabie, chief executive, told Proactive: “We created operating leverage of 34% and opened some really exciting growth channels.”
GetBusy specialises in document management software for accounting firms.
Its products help them search, file and share documents, in very innovative ways, says Rabie.
“We deal with everyone from 27 of the top 100 accounting firms in the UK through to small bookkeeping firms in the US and Australia.”
Reckons was a successful public company in Australia.
The demerger saw two of its assets, Virtual Cabinet and Smart Vault, brought together to build a new growth company, which was then listed on AIM.
Customer focus
Rabie believes one reason for its growth is a unique customer-focused culture
“We are focused on and building a company that cares about customers in a real way and delivers applications that truly meets their requirements and hopefully goes beyond those.”
“We also have a great management team, with people who are very passionate about what we do and are very experienced in the industry in which we work.
“They think in a very innovative and agile way, which enables us to move very quickly to meet customer requirements on a regular basis.”
Rabie expects the growth to continue in 2018.
US transfer
Smart Vault is a cloud-based document management system currently only on sale in the US.
But it is proving disruptive to the market there, says Rabie, as desktop-based rivals have not moved quickly enough onto the cloud.
On the back of that, he sees potential for it to be introduced into the UK, Australia or New Zealand and generate additional growth.
Compliance changes such as GDPR here in the UK are also "very favourable to us”, he says.
“I think more and more people are aware now of how important it is to securely file and deal with documents in a professional and safe way.
“These drivers are offering great growth opportunities. So for us now it is about execution.”
Currently, some 30% of revenue comes from US customers, 50-55% comes from the UK and the rest from Australia and New Zealand.
“So we are truly global and as we develop new products, we can push them out across the world.”
Broker sees further growth
Broker Stockdale expects underlying losses [adjusted EBITDA] in 2018 to narrow to £823,000 from £1.21mln as revenues improve to £10.3mln (£9.3mln).
The broker highlighted that recurring revenue is now up to 86% of the total from 83%, while paying customers increased by 11% to 57,000.
Business outside of the UK has also jumped to 45% of the total from 6% in 2015.
The broker raised its target price to 48p from 41p previously, which compares to a market price of 32.5p