Join our community of smart investors

Blue Prism raises £100m

The group’s sales soared, but losses widened considerably
January 25, 2019

'Expansion' is the word that most neatly encapsulates Blue Prism’s (PRSM) full-year numbers. On the one hand, sales soared by 125 per cent, while period-end monthly recurring revenues doubled to £5.6m. 

IC TIP: Hold at 1,344p

But, on the other, losses also widened. Indeed, adjusted cash losses rose from £8.3m to £21.6m, after accelerated investment in global sales and marketing and higher sales commissions over the three months to October – which chief executive Alastair Bathgate said was Blue Prism’s strongest quarter ever. That said, the upcoming adoption of the accounting standard IFRS 15 will mean sales commissions are capitalised and amortised over time, like the revenues to which they relate, which should help reduce losses.

There was expansion in another sense too: net cash climbed by a whopping 210 per cent – supported by last January’s £40m share placing. A further £100m placing, open to institutional investors, coincided with the release of these results and closed within hours. While Mr Bathgate expects half of the proceeds to strengthen the balance sheet, they will also facilitate salesforce and research & development (R&D) investment.

According to Bloomberg estimates, analysts expect adjusted losses per share of 36.7p for FY2019 (from 39.9p in FY2018).

BLUE PRISM (PRSM)   
ORD PRICE:1,344pMARKET VALUE:£902m
TOUCH:1,344-1,354p12-MONTH HIGH:2,635pLOW: 1,002p
DIVIDEND YIELD:nilPE RATIO:na
NET ASSET VALUE:18pNET CASH:£50.5m
Year to 31 OctTurnover (£m)Pre-tax loss (£m)Loss per share (p)Dividend per share (p)
20144.5-0.2nanil
20156.1-0.7-2.6nil
20169.6-5.2-10.5nil
2017 (restated)24.5-10.1-16.7nil
201855.2-26.0-39.9nil
% change+125---
Ex-div:na   
Payment:na