DRUM Drumz Plc

 
TIDMACRM 
 
This announcement contains inside information for the purposes of Article 7 of 
the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue 
of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the 
publication of this announcement via a Regulatory Information Service, this 
inside information is now considered to be in the public domain. 
 
Acuity RM Group plc 
 
("Acuity" or the "Group") 
 
Largest-Ever Contract Win. 
 
Corporate Update 
 
Acuity (AIM: ACRM), the software group, which supplies the award-winning STREAM? 
software platform for the Governance, Risk and Compliance ("GRC") market, 
together with associated consultancy services, provides the following update on 
developments at the Group. 
 
CONTRACT WIN 
 
Acuity's wholly owned operating subsidiary, Acuity Risk Management Limited 
(`ARM'), has won its largest contract worth £561,000, for the use of Acuity's 
software platform, STREAM® over the next five years.  The client is a major 
organisation within the British Government. This is one of three orders from the 
same customer won so far in 2023, the aggregate value of which is in excess of 
£1 million. 
 
TRADING UPDATE 
 
HIGHLIGHTS 
 
  · Strong recent growth in orders £955,000 (valued at first 12 months revenue) 
from 1 April with more expected before 31 December in the near future. 
  · Contract renewals, a significant KPI for the Company as customer retention 
has a major effect on growth for SaaS companies and ARML the Company has been 
achieving 96%. 
  · Forward contracted revenue as at 31 October 2023 £2.9 million 
  · Sales pipeline has increased to £5.7m as at 15 November 2023 from £3.8m in 
March 2023 with increasing contribution from partners. 
 
Key performance indicators of ARM 
 
ARM has now been under the ownership of the Company for approximately seven 
months. The integration of ARM into the Company and the transition of Kerry 
Chambers into the CEO role has gone well and sales momentum is building. 
 
Contracts to use Acuity's software platform, STREAM® have been won since 1 April 
2023. The most notable of which are: 
 
  · the contracts worth a total of £1 million+ as detailed above 
  · a three year contract worth £85,000 with a new client to manage their ISO 
27001 framework and excellence of service.  The client is multi-national 
telecoms business; and 
  · a three year contract worth £160,000 with a new client to manage their ISO 
27001 framework and excellence of service.  The client is a motor manufacturer. 
 
There are further contract opportunities with each of the three customers above 
and several other significant opportunities with other new customers are in 
advanced negotiation and are anticipated to be closed in the coming months. 
 
The sales pipeline has increased to £5.7m as at 15 November 2023 (22 March 2023: 
£3.83 million). This results from a combination of improved internal marketing 
and a much stronger performance from partners following the appointment of a new 
dedicated partner manager. 
 
Commercial progress 
 
ARML's revenues have grown by 43% over the past two years and all of the 
Company's KPIs have continued to improve significantly and consistently during 
this period, further demonstrating the ongoing success of the strategy for the 
planned faster growth of orders and increase in revenues is working well: 
 
As noted above, the sales pipeline has increased to £5.7m in November 2023 from 
£3.8m in March 2022.  This results from a combination of improved internal 
marketing and a much stronger performance from partners following the 
appointment of a new dedicated partner manager.  Sales opportunities typically 
require a six to 12 month conversion period, given the organisational 
significance of risk management projects, requiring buy-in from multiple 
departmental heads. 
 
Partnerships 
 
Major players in the GRC market have typically used a partnership strategy to 
grow their market presence and the partnership model is a key component of 
Acuity's sales growth strategy.  Acuity is seeing increasing traction from its 
partnership programme with a number of the recent awarded contracts coming 
through partners and the number and value of sales opportunities increasingly 
materially - more than 25% of the current sales pipeline are partner sourced. In 
addition, the Company has increased its geographic reach through new partners 
relationships. The Company now has five partners based in the US including 
Security Executive Council ("Sec Leaders") which was engaged in October 2023. 
 
Financial performance 
 
Annual revenues have grown strongly over the past two years and this is expected 
to continue and further strengthen.  With renewals and the expected growth in 
orders based on the partner programme and general strength of the sales 
pipeline, the Group is making progress towards cash generative trading. 
Profitable trading, under IFRS accounting standards will take longer to achieve, 
although it remains a realistic objective in the next year. 
 
Angus Forrest, Executive Chairman, commented; "The seven months since the 
readmission and particularly the four months since Kerry Chambers' appointment 
as Chief Executive of Acuity in late June, has been a period of material 
progress towards achieving the objectives set out in the readmission document: 
 
  · Accelerate revenue growth both organically in existing and other global 
markets 
  · Further penetrate existing markets by forging stronger customer and partner 
relationships 
  · Major steps have been made towards cash generative and profitable trading" 
 
For further information please contact: 
Acuity RM Group plc                      https://acuityrmgroup.com 
Angus Forrest                            +44 (0) 20 3582 0566 
WH Ireland (NOMAD & Broker)              www.whirelandplc.com/capital-markets 
Mike Coe / Sarah Mather                  +44 (0) 20 7220 1666 
Peterhouse Capital (Joint broker) 
Lucy Williams / Duncan Vasey             +44 (0) 20 7469 0936 
Clear Capital (Joint broker) 
Bob Roberts                              +44 (0) 20 3869 6080 
 
Note to Editors 
 
Acuity RM Group plc 
 
Acuity RM Group plc (AIM: ACRM), is an established provider of risk management 
services. It's award-winning STREAM® software platform, which collects data 
about organisations to improve business decisions and management. It is used by 
around 70 organisations in markets including government, utilities, defence, 
broadcasting, manufacturing and healthcare. 
 
The Company is focused on delivering long term, sustainable growth in 
shareholder value. In the short to medium term this is expected to come from 
organic growth and thereafter may also come from complementary acquisitions. 
 
 
This information was brought to you by Cision http://news.cision.com 
https://news.cision.com/acuity-rm-group-plc/r/contract-and-corporate-update,c3891714 
 
 
END 
 
 

(END) Dow Jones Newswires

December 12, 2023 02:00 ET (07:00 GMT)

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