LONDON, September 4, 2015 /PRNewswire/ --
New contract wins and increasing underlying strong demand for Group services
Introduction
The market for business intelligence and analytics is one of the fastest growing software markets and the Group is in a very good situation to build on its current market positioning. The integration of the IS Solutions business and Celebrus, which was acquired at the start of this calendar year, has gone well. Combining both these established and well respected brands has opened up a number of cross-selling opportunities whilst also creating a much more balanced business with stronger higher margin license sales and progressively greater project and recurring revenue.
Trading
In the first five months of the current financial year (April - August), the business has successfully continued to build on its compelling finish to last year.
The traditional IS Solutions business is experiencing much stronger underlying demand for its Analytics offering with sales currently well ahead of management budget. With financial organisations being the largest investors in big data solutions, the Board is very pleased to announce that this divisions' business team has secured two major contracts with new customers from within the financial services sector. One of these contract wins will initially be for a three-year period, the second will be completed in this year but we expect additional work upon successful completion of the first phase. It is anticipated that they will add contracted revenue in excess of £4 million over the current financial year and in excess of £350,000 per annum of recurring revenue in subsequent years.
It is pleasing to report that sales within Celebrus are also ahead of plan as it benefits from being part of a larger organisation and thus able to capitalise on its increasing pipeline of opportunities. Recent wins in the retail and airlines sectors have been added to the continuing success in the financial sector putting it ahead by 64% of sales for the same time last year.
Overall, we are making excellent progress and the above success gives us the opportunity to invest in our future. Over the coming twelve months the Company will establish a US office to provide real time customer service and pre-sales support to its already substantial US business and further enable future growth. IS Solutions will also expand its UK direct salesforce to take the collective portfolio to a broader customer base; Combine these initiatives with current project sales opportunities with both new and existing customers and we have an exciting future to look forward to.
As a result of this excellent start, the Board is confident that the Company will deliver a strong performance for the year ending 31 March 2016. Revenue will be ahead of market expectations and profitability will significantly exceed current market expectations.
We look forward to updating shareholders as we progress through the year.
Dividend policy
As a Board, we are committed to a progressive dividend policy whilst balancing our investments for future growth. We therefore expect that we will resume our progressive dividend policy and return to paying an interim dividend and a full year dividend based on the overall performance in the financial year ending 31 March 2016.
EDITOR'S NOTE
Ticker: AIM: ISL
Accreditations: ISO27001; PCI (DSS)
IS Solutions Plc
Established in 1985, IS Solutions is a systems integrator focusing on three business areas, namely portals, analytics and enterprise content management. 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. Within each of its business areas, IS Solutions generates three principal revenue streams across product sales, projects and managed services and licence maintenance.
The business employs 116 staff, including 18 in Chennai, India, who provide product development and support. It also has a strong blue chip client base which includes Toyota, Toshiba as well the AA, NHS, KBC Bank, Compare The Market™, URENCO, M&S and HSBC.
ENQUIRIES
IS Solutions Plc
John Lythall, Managing Director: Tel: +44(0)1932-893333
email: moreinfo@issolutions.co.uk or follow us: http://www.linkedin.com/company/issolutions
TooleyStreet Communications (IR & media relations)
Fiona Tooley
Tel: +44(0)7785-703523
email: fiona@tooleystreet.com
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