2011 Un-audited accounts
Similar to 2010, Assima succeeded in growing revenue at a strong rate in 2011, with consolidated turnover of just under £19m (nearly €23m). This represents more than 15% growth which was generated in spite of adverse market and economic conditions, especially in the second half of 2011.
This growth has been primarily achieved in the consulting area with total revenue from Professional Services jumping by 44% when compared to 2010. On the other side, Software revenue decreased year on year, both in proportion of total revenue (40% against 50%), and in volume (11% decrease). That under-performance, which came unexpectedly after a very dynamic first half, has two specific causes. Firstly, in the markets that have been the most impacted by the economic slowdown and where Assima has direct operations (Spain and France), we have had to face very aggressive competition on price, sometimes fighting against products offered for free. Secondly, in the two markets where our performance has been the strongest (UK and USA) we have seen the signing of some major software contracts delayed into Q1 2012.
As a result of the lengthened process for concluding some software license deals at the end of 2011, mainly for SAP projects, our expectations for H1 2012 are high and we are confident that the first 6 months will prove to be even better than the same period for 2011, this is despite the fact that H1 2011 was our strongest performance since creating Assima.
We also expect our operations to be favorably impacted by some major events that occurred in our market space in the early months of 2012.
The most significant move has been the acquisition by SAP of the software assets of our main German competitor, Datango. This will be a game changing event because SAP used to partner with the largest software player in our field, Ancile (American company created in 2010 from the software assets of RWD Technology acquired by Court Square Capital). Considering that SAP is also officially promoting Assima through their EcoHub program, we expect that new situation to create numerous opportunities in large accounts faced with the constraints of a migration. Assima is now clearly the only established Independent Software Vendor focused on providing end-user performance and software simulation technology with a commitment to continued Research and Development in this field.
In parallel to this, Assima confirmed on Feb 9th 2012, the acquisition of one of its last American competitors, Kaplan Learning Technologies Inc. That operation, fully self-financed (without debt), will enrich Assima’s product portfolio with two software offerings (entry and mid-range in terms of price tagging) that is complimentary with our current high-end offerings. This acquisition also brings a significant customer base of SAP clients which we see significant cross-selling opportunities.
With this expanded portfolio and expected financial and sales synergies, Assima’s 2012 projected turnover should stand at £23 to £25m (€28 to €30m). We also plan to rebalance the ratio between Software and Services towards a 50/50 split. On the software side, maintenance (recurring profitable revenue) should represent 50% of total software revenue within the extended customer base.
From a more strategic view point, these two acquisitions demonstrate that our market is entering a final stage of consolidation from which Assima has every reason to believe that it will emerge in a leadership position, after just ten years of existence. For all these reasons 2012 should be highly positive for Assima.
Next Communication: Audited annual accounts, April 28th, 2012.
Assima's innovative software and specialist professional services enable organisations to increase end-user understanding, confidence and competence in enterprise applications.
Assima’s solutions give organisations the capability to create highly realistic and easily maintainable virtual clones of their enterprise applications.
Assima has been in business since 2002 developing and delivering software technology that helps large organisations maximise their return on investment from enterprise software projects.
Assima’s technology is used for Training, Localisation, Performance Improvement, Application Augmentation, Innovation and Business Transformation by global organisations such as; Morgan Stanley, Xerox, Veolia, Schneider Electric, Chartis, SAB Miller, Serco, TNT and many more.
Assima has been recognised as a leading innovator, with several awards and patents granted and pending on its unique technology. Similarly, Assima professional services projects have won numerous awards recognising outstanding project delivery on time to budget with truly innovative solutions.
Assima has direct operations in 11 countries in Europe and North America and strategic partnerships extending its reach in the Middle East and Asia
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