- Strong third quarter growth - up 39% on last year
- Appointment of Philip Dodds as Group CEO
- Regional growth in USA market exceeding projections at 56%
- Acquisition of 20-20 House to serve as group HQ
- Successful roll out of Phocas ProMobile
The third quarter saw continued very strong growth with group revenues for the financial year to date at £9million ($15million) up 39 % on the same period last year. The final quarter looks likely to continue the trend and I would expect to see year end revenues of approximately £12million ($20 million).
Despite heavy re-investment in the business and the product we also saw excellent profit levels with a year end projection of approximately £1.8 million ($3 million).The growth has been strong across the three trading companies with the UK and Australia seeing approximately 20 % year on year growth and the USA seeing a very healthy 56% year on year growth.The increase has come from all aspects of the business with consultancy showing the largest increases. The subscription pricing model continues to provide a very solid base for the business with regular revenue accounting for 70% of total turnover. Our on-going commitment to Customer Service is reflected in a customer retention rate of over 97%.
I am very pleased to be able to announce the formation of a new group company providing investor analysis services. This company will start trading in the next financial year and will build upon the historical involvement that Phocas has had with Private Equity and Venture Capital organizations by providing services specifically for investor intelligence. The key services that will be provided are portfolio management, due diligence intelligence and post funding intelligence.
The roll out of Phocas ProMobile has been very successful across the existing user base and also in strengthening the competiveness of Phocas in the BI market place. We continue to follow the strategy of providing complementary products to support our core business intelligence platform with a new release in the third quarter of this financial year of Phocas CRM providing massively increased functionality and flexibility. A new release of our Rebates module is planned for the first quarter of next financial year.
Key new products that are in the pipeline are ‘Sell thru data services’, BI on demand (with increased commitment to cloud deployment), collaborative BI, unstructured data analysis and survey software.
We are pleased to announce the appointment of Philip Dodds as Phocas Group CEO. Philip is currently Phocas Development Director and will continue to cover that portfolio. Philip qualified as a chartered accountant with Price Waterhouse and has a breadth of experience in IT having successfully built a software company providing financial management software (subsequently acquired by Microsoft) and has worked extensively in all three of the Phocas key geographical markets.
We are also pleased to announce the appointment of Rick Toepfer (General Manager of Phocas Pty) to the Phocas Group Board.
The move to the newly acquired 20-20 House was successfully completed in January. This provides us with a very cost effective asset strengthening the balance sheet with 10,000 sq feet allowing for continued strong growth.
We continue to see favourable economic conditions across all of our markets with economic growth particularly strong in the UK. This along with continued organic growth in our existing markets, and the development of new markets both geographically and vertically means the outlook for the next year is very positive.
Paul Magee, Chairman
Phocas Group of Companies
Other company updates for Phocas Software can be found here.