Primorus Investments PLC Engage Technology Investor Update (5934G)
07 Noviembre 2018 - 1:00AM
UK Regulatory
TIDMPRIM
RNS Number : 5934G
Primorus Investments PLC
07 November 2018
Primorus Investments plc
("Primorus" or the "Company")
Engage Technology Investor Update Received
Primorus Investments plc (AIM: PRIM, NEX: PRIM) is pleased to
provide shareholders with an update on its investment in the SaaS
("Software as a Service") end-to-end workforce software vendor
Engage Technology Partners ("`Engage") by way of an update received
by Primorus from Engage. Primorus has invested a total of
GBPGBP1.4m in Engage made up of GBPGBP400,000 at GBP15 per share
and GBPGBP1.0m at GBP22 per share.
This update follows on from information provided in the Primorus
Q3 Report announced on 24 October 2018 and please note that some
areas of content of the Engage Report is deemed commercial in
confidence however Engage have kindly allowed us to transmit some
of the information for the benefit of Primorus shareholders.
Highlights;
-- Strong construction market penetration via VMS ("Vendor
Management System") sales to Tier 1 construction companies.
Post-period reporting 75 live Corporate Clients with a further 17
contracted pending going live.
-- Significant corporate interest from global software vendors
and aggregators in Engage products and the Engage platform.
Discussions with multi-party potential corporate investors
accelerate.
-- Collaboration with California-based Jumio to incorporate and
integrate their global RTW ("Right To Work") verification solution
into the Engage platform.
-- Completed several keenly awaited critical first version
self-serve product units including OSP ("Outsourced Payroll
Product") and PAYE for Temps allowing the entire platform to attain
a level of self service across the offering.
-- A product scaling refinement has reduced the run-rate average
monthly revenues to below management forecasts. Pleasingly product
engineering has already mitigated this specific issue.
-- Projected platform revenues expected to accelerate into Q1
2019 and point of maximum product development spend reached in
October and cashflows heading back towards breakeven in 2019.
Alastair Clayton, Executive Director, commented:
"We are pleased to report a summary of a very positive Quarterly
Report received from Engage and I am happy to be able to share what
I am allowed to with shareholders. It is clear the Engage team
continue to win business at an impressive rate and what is
noteworthy is the speed with which the Engage VMS product has
penetrated the market. With several key self-service product
deliveries dropping in the Quarter we are closely watching the
platform's ability over the coming few quarters to automate the
on-boarding process and generate globally scalable revenues from
its existing and future customers.
We invested in Engage not because of its immediate revenue
generation, and there was a (now mitigated) revenue miss this
quarter as outlined above, but because we believe the viral nature
of the platform has the potential to totally disrupt the existing
software offerings servicing this huge global sector. What is most
pleasing is that we have begun to see the first signs that the
sales aspect of the Engage platform is both viral from the bottom
of the supply chain upwards but also top down from large corporates
seeking solutions for their UK and overseas operations.
I believe that, should the trajectory of client wins, and
product delivery, continue to grow as they are, we will begin to
see the revenue gain pace and grow exponentially over the coming
quarter or two as all the benefits of taking the time (and money)
to build a truly globally scalable, self-service, pure SaaS
platform begin to pay off. Engage have taken a more difficult path
to deliver a better revenue outcome.
As with many of the private businesses we meet, I see the
biggest risk for Engage as one of executing small short-term
financings in a market dominated by large, Private Equity and
Venture Capital investors. Make no mistake, just because Engage
needs modest amounts of money to execute its plan, it doesn't mean
the resulting company cannot, in my opinion, be a global market
force.
We are aware that whilst this strategy may not fit the standard
large investors "cookie-cutter" investment criteria, it does fit
ours. Judging by the significant corporate interest being shown in
the Engage platform by other specialist investors, global HR
software vendors and aggregators, I am confident that we are not
alone."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Primorus Investments plc: +44 (0) 20 7440 0640
Alastair Clayton
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson
Broker: +44 (0) 20 3621 4120
Turner Pope Investments
Andy Thacker
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