Esker announces strong half-year results
SPI, the African distributor for utility software products and services to the Open Systems segment of the IT industry and the Southern African reseller for Esker, a leader in document process automation solutions, today announced its 2017 half-year results.
Esker’s 2017 half-year sales revenue grew 14% over the same period of the previous year to reach almost €38m. This growth was achieved by taking into account the activity of recently acquired German company, e-integration GmbH, as well as Esker’s dynamic organic growth. These results are particularly noteworthy considering sales in the first half of the year suffered from an unfavourable, non-recurring base effect linked to several unusual licensing deals recognised in H1 2016.
The success of Esker’s cloud-based document process automation solutions continues to drive company growth across all markets. Revenue generated by cloud-based solutions was up 20% in the first half of 2017, representing 84% of total revenue.
For the first half of 2017, Esker’s operating income increased by 3%, representing 15,6% of sales revenue. This level of operating margin is slightly lower than in the first half of 2016 (17,1%), but is up over FY2016 as a whole (14,6%). This performance aligns with the company’s development plans, which seek to achieve sustained business growth and significant profitability to allow it to self-finance its development, remunerate the efforts of its employees, and reward its shareholders.
Operating income for the first half of 2017 set a new record. The strong profitability of Esker’s cloud-based solutions enabled the company to absorb the direct profit and loss impact of the sharp drop in license activity. This profitability has also allowed Esker to maintain an ambitious investment program fuelling further profitable growth for years to come. Given non-significant financial and exceptional results and a tax burden consistent with 2016, net income increased by nearly 6% to €4,2m.
As of June 30, 2017, Esker’s workforce worldwide, including the companies acquired, reached nearly 490 employees. Compared to the same period the previous year, the R&D department increased by 22%, the number of professional service consultants increased by 24%, and the marketing and sales departments are up more than 8%.
The first half of 2017 confirmed the growing success of Esker’s cloud-based solutions. The value of the contracts signed during the period (booking value) increased by 52% compared to the first half of 2016 and booking forecast is positive for the rest of the year.
Based on growing sales success and the recurring nature of its business model, Esker anticipates that the remainder of 2017 will reinforce the business trends achieved in the first half of the year. Esker generates more than 50% of its sales revenue outside the Euro zone and is therefore exposed to currency fluctuations. This should not, except in the event of an unforeseen occurrence, significantly affect the results for the 2017 financial year.
For more information, please contact Chris Anderson of SPI Group Pty Ltd on 011 234 1560 or fax 011 234 1387; email chris@spi.co.za or visit our website www.spi.co.za
