LONDON, February 1, 2016 /PRNewswire/ --
IS Solutions Plc Stock code: AIM: ISL (the "Company" or "IS Solutions")
Further contract wins will result in profitability significantly ahead of market expectations
As we indicated at the time of our Half-year financial results released in November 2015, our business is driven totally by data and we operate in a market where business intelligence and analytics is one of the fastest growing software markets.
Over 70% of our business is generated by our Analytics capability. The combination of the established and well respected brands of IS Solutions and Celebrus continues to open up a number of cross-selling opportunities and, at the same time, it has created a much more balanced business with stronger higher margin license sales and progressively greater project and recurring revenue.
Since our Half-year financial results we have successfully continued to build on our current market position within the data solutions arena both in our domestic market and internationally, utilising our extensive technical 'know-how' and skills base.
In 2016, we continue to witness stronger demand resulting in sales for both the IS Solutions business and Celebrus now well ahead of management budget. We are delighted to announce that the Company has secured a further two major projects with new and existing customers operating within the retail and financial services sectors. It is anticipated that these will add contracted revenue of up to £2 million in the current financial year and in excess of £250,000 per annum of recurring revenue in subsequent years. We have a number of other exciting opportunities in the pipeline with the potential to convert these in the first half of this calendar year.
We remain on track to establish a US office which will focus on providing real time customer service and pre-sales support to our already substantial US business and to support further future growth. IS Solutions is in the process of expanding its European direct salesforce to enable it to take our collective portfolio to a broader customer profile. Combine these initiatives with current project sales opportunities with both new and existing customers and we have an exciting future to look forward to.
The Board is confident that the business will deliver a strong performance for the year ending 31 March 2016 with both revenue ahead and profitability significantly ahead of current market expectations. Trading for the 2016/17 financial year is also expected to be significantly ahead of current market expectations.
We look forward to updating shareholders as we progress through the year and at the time of the Annual results which will be announced in June 2016.
As we have previously indicated the Board remain committed to a progressive dividend policy whilst balancing the Company's investments for future growth. We therefore anticipate that, barring any unforeseen situation, we will pay a progressive final dividend based on the overall performance for the financial year ending 31 March 2016.
IS Solutions Plc
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Established in 1985, IS Solutions is a Data Solutions company focusing on three revenue streams, namely License Sales, Projects and Recurring Revenue. The recent acquisition of Celebrus has further strengthened its position as a leading player in the field of Analytics which is now its fastest growing sector. Specifically, IS Solutions specialises in bringing together a range of components from various technological solutions providers and software developers to create a unified and fully functioning system for the end client. The business employs 118 staff, including 3 in US, and 26 in Chennai, India, who provide product development and support. It also has a strong blue chip client base which includes Toyota and Toshiba as well as Saga, NHS, Compare The Market™, URENCO, M&S and HSBC.
SOURCE IS Solutions Plc