Robotics/AI are often cited alongside biotechnology and fintech as among the most likely drivers of wealth creation over the next decade. The market concurs judging by the share price performance of Blue Prism (PRSM) following release of full-year figures detailing a surge in revenues, record second-half performance across its key geographies, and customer numbers up to 1,677 from 992 in the previous year.
The company, which specialises in robotics software, has been investing heavily in new staff and marketing. This more than doubled operating expenses over the period, but that is set against a successful upselling campaign. Tellingly, recurring licence revenue accounted for 96 per cent of the top line, while upsells represented 72 per cent of new monthly recurring revenue. The drive for scale comes at a cost. The range of new commitments translated into an adjusted cash loss of £71.9m against negative £21.6m in FY2018.
Numis Securities is guiding for an earnings loss of 66.7p for the October 2020 year-end, falling to negative 10.1p in FY2021.
| BLUE PRISM (PRSM) | ||||
| ORD PRICE: | 1,815p | MARKET VALUE: | £1.47bn | |
| TOUCH: | 1,814p-1,817p | 12-MONTH HIGH: | 2,030p | LOW: 774p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 118p* | NET CASH: | £74.1m ** | |
| Year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 6.10 | -0.70 | -2.60 | nil |
| 2016 | 9.60 | -5.20 | -10.5 | nil |
| 2017 | 24.5 | -10.1 | -16.7 | nil |
| 2018 | 55.2 | -26.0 | -40.0 | nil |
| 2019 | 101 | -80.7 | -105 | nil |
| % change | +83 | - | - | - |
| Ex-div: | - | |||
| Payment: | - | |||
| *Includes intangible assets of £65.7m, or 81p a share. **Cash includes cash on deposit classified as short-term investments. | ||||
