This presentation was released to the ASX on March 11, 2016

 

Prophecy Presentation 2016_03_11_Final

The attached notice of dividend was released to the ASX on 26 February 2016

Notification of Dividend Mar 16

The Prophecy accounts for the Half year ending 31/12/15 have been completed and once again show record results for the half.

These accounts are yet to be fully audited and the final audited half year report will be released later in February.

The completed management accounts show that revenue for the half grew to $8.0 million, a new record result. This represents a growth of 81% compared to the same period last year which also was a record.

New sales invoicing for the SNARE product set was up 120% on the same period last year and this has contributed to the record revenue number. eMite new licence sales for the period grew 45%.

Profit from ordinary activities before income tax and depreciation/amortisation and acquisition costs has come in at $3.1 million, another record result for the half. This is up 55% from the same period last year and is a most pleasing result.

Cash at the end of December 2015 was $5.15 million.

The board will declare a dividend of 2 cents per share payable in April 2016.

Our plan is to continue the aggressive sales growth of the SNARE business along with the eMite business and we expect to see a very good full year result both in revenue and profit from our continued combined sales push.

• Q1 new sales invoiced $3.4 million

• Q1 Income recognised $4.54 million

• Q1 Management Profit $1.94 million

• Q1 Unearned Income account net increase of $0.6 million

• eMite Q1 result is running ahead of expectations

• SNARE Q1 results ahead of same period last year

 

Prophecy is pleased to report an excellent start to FY16 with a buoyant set of Q1 numbers. As previously reported, new sales invoiced came in at a very healthy $3.4 million, to continue the sales momentum that had been established during FY15. Considering that Q1 covers the Northern Hemisphere summer holiday season where business can run more slowly, this has been a very good result.

Total Income recognised for the group for Q1 came in at $4.54m, which again is an excellent start to FY16. Income for the same period last year came in at $1.41 million and thus we have been able to achieve very solid growth compared to last year. The Income number includes both the new sales numbers and invoicing for existing recurring base revenues. Not all the invoiced amounts are recognised as income immediately as a portion is allocated to unearned income and then brought to account against income over 12 months.

The management accounts for Q1 show a profit of $1.94 million which again is an excellent result for the first period. The equivalent number for last year was a profit of $0.25 million. Our investment in new resources is balanced against new sales growth which enables a healthy profit to be maintained along with our growth.

As a result of our increased invoicing the Unearned Income account for Q1 came in at an increase of $0.6 million.

The acquired eMite business performed above expectations for Q1 to bring in excellent sales numbers backed up by good revenue and profit numbers. The acquisition has progressed smoothly with a number of great new sales being completed to further enhance an excellent customer list. The challenge now is to continue to build on this excellent start to produce the results expected for the half year.

SNARE sales have continued to impress with very good numbers achieved for Q1. It’s always a challenge to come off a very good Q4 sales period to complete FY15 and then continue the momentum with excellent sales numbers for the next Q1 which includes the northern holiday season. Q2 through to Q4 last year provided tremendous growth for SNARE and we now have the challenge of expanding on that achievement as we head towards our Q2 targets to make the numbers for the half year.

Overall, across our two key business units, we have made an excellent start to our FY16 targets.

 

• Q1 new sales invoiced for the Prophecy Group have come in at $3.4 million
• Full year new sales for FY15 for the group were $5.54 million
• Considerable Q1 growth for both SNARE and eMite products
• Early new sales translates to earlier investment in additional resources
• Record Q1 new sales achieved for both SNARE and eMite products
• Excellent new name reference sites added
• Very strong start to eMite new sales
• Record Q1 revenue number expected on the back of the sales momentum

Prophecy International achieved new invoiced sales totalling $5.54 million in the full 2014-2015 financial year to begin a new era of growth for the company. The sales growth momentum achieved in FY15 has continued into FY16 with group Q1 new invoiced sales coming in at $3.4 million, providing the company with a very pleasing result to begin the new year.

Compared to the same quarter last year, new sales for both SNARE and the eMite products have grown considerably. The momentum gained from our FY15 sales push has been maintained and the sales strategies put in place a year ago continue to produce the improved results expected. SNARE new sales are running ahead of eMite new sales YTD as planned in the annual budgets. eMite products have the potential to outperform and the internal challenge is on for eMite sales to exceed SNARE sales by the full financial year end.                                                                        …../2

Good early sales numbers auger well for the business, as the locked in revenue achieved enables management to reinvest additional resources into the growth of each key business unit at an earlier stage. That early investment in turn provides a boost to the potential achievement for the full financial year.

The SNARE business unit achieved very high sales numbers in Q4 of FY15 and it’s very pleasing to see momentum maintained to produce a record new sales number for Q1 SNARE sales. An impressive list of new names has been added during the course of the quarter and these sales demonstrate the market acceptance that SNARE has been able to achieve over the last 12 months of enhanced sales activity. Each new name further adds to the prestigious list of SNARE users, thus providing great references for future sales.

eMite sales have taken off very strongly since our newest acquisition and produced a Q1 result that is well ahead of budget. This has been a fantastic result, bearing in mind that an integration process has taken place alongside the normal conduct of business. Some excellent new names have been added to the client list and the sales pipeline has been expanded with very promising opportunities. Integration work has begun that will enable the eMite products to work with SNARE and further enhance our abilities to service the medium to large IT departments worldwide with our expanded product set.

The excellent new sales results for Q1 will flow through to produce a record Q1 revenue number once the financials are tabulated for the quarter. All in all it’s been an outstanding start to the FY16 year.