Demand for robotic process automation (RPA) shows no signs of waning. Indeed, specialist Blue Prism (PRSM) secured 609 software deals during the 12 months to October 2017, compared with 189 during the year before. Meanwhile, the group’s recurring licence revenue represented an even higher proportion of overall sales, rising from 85 per cent to 90 per cent.
However, the top line’s powerful momentum disappeared further down the P&L. Operating losses nearly doubled from £5.3m to £9.5m, as investment in global expansion continued. This focus does appear to be yielding results: the US customer base grew by 419 per cent, and now accounts for 36 per cent of total revenue. Meanwhile, the Asia-Pacific business made a maiden sales contribution of £1.8m.
Blue Prism also announced the placing of 3.2m shares at 1,260p each, to raise £40m. Reflecting clear investor appetite, the fundraising ended just 53 minutes later. The proceeds will help drive the group’s growth strategy, and strengthen the balance sheet. Simultaneously, a secondary placing was announced to raise £30m for selling shareholders including chief executive Alastair Bathgate, another executive director and the RisingStars growth fund.
Analysts at Investec forecast losses per share of 26.7p for the year to October 2018, worse than 12.9p reported for FY2017.
| BLUE PRISM (PRSM) | ||||
| ORD PRICE: | 1,380p | MARKET VALUE: | £865m | |
| TOUCH: | 1370-1380p | 12-MONTH HIGH: | 1,661p | LOW: 383p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | * | NET CASH: | £16.3m | |
| Year to 31 Oct | Turnover (£m) | Pre-tax loss (£m) | Loss per share (p) | Dividend per share (p) |
| 2013 | 3.0 | -0.3 | na | nil |
| 2014 | 4.5 | -0.2 | na | nil |
| 2015 | 6.1 | -0.7 | -2.6 | nil |
| 2016 | 9.6 | -5.2 | -10.5 | nil |
| 2017 | 24.5 | -9.5 | -15.3 | nil |
| % change | +155 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Negative shareholders' funds | ||||
