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Friday 04 December 2020

Living Map finds route to further funding

logoPlaying very much the role of ‘David’ to the likes of Google Map’s ‘Goliath’, Bath-based Living Map is proving that there’s room in the market for a differentiated and innovative approach to mapping.

The differentiation arises from Living Map’s capability to flow seamlessly from outdoor to indoor spaces, and can be integrated with sensors to track, for example, when valuable assets go walkabout.

Living Map has just completed a £850k funding round led by existing investors Committed Capital and Mercia Asset Management. Founded in 2010, Living Map had raised £2.6m in September 2019 (see Living Map locates new source of funding) which, along with an earlier round in 2018 brings total funding to date to £4.5m.

Living Map has an impressive client base including Canary Wharf, Heathrow Airport and the MET Museum in New York and, more recently, systems to help key workers navigate their way around Bath and the city’s RUH Bath Hospital. They’ve also done a system for the Honda factory in Swindon to track parts round the production line.

Next market – aviation. Up, up and away!

Posted by: Anthony Miller

Tags: funding   startup  

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Thursday 03 December 2020

The Key acquires Arbor Education

The Key logoIn a move that further demonstrates the consolidation trend we discussed in our recent Education Suppliers, Trends and Forecasts report, The Key has announced the acquisition of management information systems (MIS) provider Arbor Education.

Arbor was founded in 2011 by James Weatherill and Emile Axelrad. It has been growing well in recent years, including securing contracts with the multi-academy trusts REAch2 in 2018 and United Learning earlier this year.

The Key’s group of services includes WebBased (acquired in 2016), ScholarPack (acquired in 2018) and GovernorHub (acquired in 2020), as well as its core The Key for School Leaders and The Key for School Governors products and a range of other CPD, safeguarding and compliance tools.

Arbor logoIts latest acquisition brings two of the leading and fastest growing school MIS providers, Arbor and ScholarPack, under one roof. According to the most recent Freedom of Information data, at the time of the Spring 2020 school census 1,267 schools were using ScholarPack and 698 using Arbor, but further schools will have switched in September 2020. The Key claims it is now the second largest provider of MIS to schools in England, overtaking RM, but it is still a long way behind Capita SIMS (c.75% market share).

There are no current plans to merge the ScholarPack and Arbor systems. Although both MIS platforms have their strength in the primary sector, Arbor also has a secondary school proposition as well as additional data insight tools. The Key plans to increase investment in both platforms.

The deal puts The Key in a strong position at the heart of school management. Across all its products it now has a network of over 160,000 school leaders and governors in 16,000 schools across the UK.  

This acquisition follows recent school MIS deals. In June, Juniper Education added PupilAsset to its stable and in October, IRIS Software acquired iSAMS. With Capita getting closer to selling its Education Software Solutions business—which includes Capita SIMS—2021 is set to be a pivotal year in school software. With increasing market consolidation and an increasing number of suppliers now having the financial backing and market channels to expand, we are going to see a much more competitive MIS market.

Posted by: Dale Peters

Tags: acquisition   education   schools   MIS   edtech   consolidation  

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Thursday 03 December 2020

Looking beneath Oxford Metrics headline FY numbers

Oxford Metrics logoFull year results at Oxford Metrics reflect a challenging year where revenue declined 14.3% to £30.3m and PBT fell to £1.6m from £4.7m but headline results don’t tell the whole story, such as ARR edging up to £6.8m (vs. £6.2m), or the promising start to the new year.

Naturally, C-19 impacted the year that ended on 30 September but while it caused notable delays to sales within the Vicon motion measurement part of the business, the SaaS-transitioned infrastructure asset management Yotta segment benefitted. 

Demand for Yotta drove revenue up 7.3% to £7.5m and it met a milestone by reaching profitability during H2 and although there was an overall FY LBT of £1.3m the loss narrowed. C-19 driven remote working needs boosted demand in public asset management and new contracts with South Gloucestershire, Warwickshire, Somerset, Worcestershire and City of York local authorities drove growth. Management notes that local government procurement was delayed as authorities responded to C-19 - not cancelled - and that procurement is now returning to a more normal cycle. It also secured “several new flagship partnerships” including Telensa, a UK provider of smart IoT streetlights.

The situation was not so rosy within the Vicon motion measurement division where all market segments were affected by C-19, causing revenue to decline 19.6% to £22.8m and PBT to drop to £2.7m vs. £6.3m. On the plus side it did sign four new Location-based Virtual Reality partners (part of its move into adjacent markets), and is seeing new use cases open up such as collective VR experiences and virtual film and TV production. Post year it secured a contract for the Centre for Creative and Immersive Extended Reality at Portsmouth University

Oxford Metrics is a long established company but has adapted to changing technologies and is positioned to benefit from new use cases and adoption around both existing and emerging tech. 

Posted by: Angela Eager

Tags: results   software   analytics   virtualreality  

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Thursday 03 December 2020

Greater Manchester leads way in integrated urgent care

Advanced logoNews today that A&E departments across Greater Manchester are coming together to use an integrated urgent care platform from Advanced, is a great example of the increasing demand for digital solutions to support the NHS at this critical time and the evolution towards more integrated, regional care.

Using the platform, the region’s urgent primary care alliance will ensure patients calling NHS 111 and visiting A&E are triaged in the same way; reducing waiting times and directing patients to the most appropriate care at a time when A&E departments in the region are struggling to cope with the rise in Covid-19 admissions.

The Greater Manchester Urgent Primary Care Alliance (GMUPCA) is leading the roll out of Advanced’s clinical decision support tool Odyssey across 10 NHS trusts and 9 of them will go live at the start of December. It will mean that before visiting A&E, patients will be triaged by telephone so that staff can prioritise patients with the most urgent care needs and redirect less urgent patients to more appropriate services. Patients triaged to A&E will be offered an appointment slot, significantly reducing the number of people sitting in waiting rooms.

The move follows a successful pilot which saw North West Ambulance Service’s low acuity 999 calls passed to GMUPCA (which uses Advanced’s clinical patient management software Adastra) to deliver an integrated urgent care response. It saved the ambulance service hundreds of ambulance hours per week while also expediting thousands of patient journeys and facilitating care closer to patients’ homes.

Today’s news will see a combination of Advanced’s Odyssey and Adastra solutions integrated and used across all 111, 999 and A&E services in Greater Manchester. As Dr Zahid Chauhan OBE, Chief Clinical Lead at GMUPCA, said: “It’s a much more integrated and collaborative approach so all patients across Greater Manchester will receive the same patient journey.”

Greater Manchester is a trailblazer in integrated care, but we can expect other regions to follow the same path. For more on the trends and suppliers shaping the UK health and care sector, PublicSectorViews subscribers should read our UK Health Supplier & Market Analysis report published last week.

Posted by: Tola Sargeant

Tags: contract   software   integratedcare   healthcare  

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Thursday 03 December 2020

Supply chain risk start-up Contingent connects with funding

Risk management takes on all shapes and forms depending on the business you’re in. The other day I wrote about Kamma a compliance management platform for the rental housing market, which aims to minimise landlords’ risk of not complying with rental housing legislation. Then there’s tenant referencing platform Homeppl which aims to reduce the risk of landlords renting to shonky tenants.

Here’s one that aims to minimise risk in your supply chain.

logoLondon-based Contingent (daft name; try googling it – you’ll never find it) works a bit like Kamma in that it continuously scans public domain company data sources and matches it against your supply chain and alerts you of ‘risk’.

Founded in 2019, Contingent has raised $2.3m in a seed funding round led by Connect Ventures, with participation from, Seedcamp, Concentric, and Angel Invest Ventures.

Contingent has two subscription plans depending on whether you want to monitor just your ‘strategic’ suppliers (‘Pro’) or all your suppliers (‘Enterprise’) but pricing is not disclosed (there’s a 7-day free trial though!). It also has APIs to plug into your existing supply-chain management platform.

Contingent is clearly not a ‘drop it and hop it’ solution and the ROI will depend on making sense of the information it distils for you and of course what you then do with it.

Posted by: Anthony Miller

Tags: funding   startup  

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Thursday 03 December 2020

Foundation SP secures "multimillion-pound" investment

Foundation SP logoWe met up with Reading-headquartered Foundation SP (FSP) about 18 months ago. Tim Ebenezer had taken a leap from Civica Digital to become the company’s Director of Digital; he has since become Chief Digital Officer. We learnt of a company, which despite being little known, had been around since 2011. Its offerings span cloud, productivity, data and artificial intelligence, alongside managed services.

Over nine years, FSP has grown to 80 people. Our conversations with Tim, and with CEO Simon Grosse, highlighted the importance of the company’s ethos and culture, driven by a people-centric approach. The company has won numerous awards for being a great place to work.As the photo suggests, it looks to put on a good virtual celebration. 

Foundation SP LDC celebrations

The celebration comes because FSP has secured a multimillion-pound minority investment from private equity firm, LDC. The funding will be used to support FSP’s bold organic growth strategy, helping the company expand its client base, add to its suite of digital and software services, and consider complementary acquisitions. Top of the agenda is to scale without losing the culture and ethos that defines FSP.

When we met with FSP, the one part of its proposition that made it stand out from the crowd was its then-nascent Pulse360 offering. Pulse360 is now positioned as a ‘sister business’ to Foundation SP – it is a platform that focuses on giving employees a voice and allows the business to provide employee feedback. It builds on FSP’s strength in employee engagement and workplace culture.

It is solutions like FSP that could help raise the company’s profile and enhance its story around employee engagement. LDC states that it wants to help FSP become a “recognised and industry leading digital transformation brand”. Yet, despite having some high profile client names on its books – like Defra and the National Crime Agency in public sector and BDO and Russel & Bromley in the private sector - it is competing for airtime with other medium-sized companies with a stronger brand. We would like to see FSP scale without losing sight of its potential differentiators in a crowded market.

Posted by: Georgina O'Toole

Tags: funding   investment   privateequity   digital   SMEs  

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Thursday 03 December 2020

Benefex acquires Employee Benefits business from Capita

CapitaCapita continues to divest having agreed to sell its Employee Benefits business to Benefex Financial Solutions for an undisclosed sum. The sale includes Capita’s Health and Global consulting and brokerage business as well as its Flexible Benefits Consulting and Administration business. Orbit, Capita’s online benefits platform, is also included and is being licenced to Benefex. 

As well as looking to raise funds for its transformation programme, Capita is looking to slim down and simplify its Pensions and Benefits business within its People Solutions division whilst Benefex is looking to add further scale. 

Benefex was founded back in 2003 in Southampton and has been backed by Bain Capital since 2018 taking the business international. Its offer is focused on its “OneHub” employee experience platform with an impressive client list that including AstraZeneca, Bank of America, BT, Centrica, Deliveroo, E.ON, Just Eat, Liberty Global, Philips, Skyscanner and Worldpay. The combined business will now support over 650 organisations in more than 50 countries.

Posted by: Marc Hardwick

Tags: divestment   hr  

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Thursday 03 December 2020

Lloyds pioneers Swift’s new instant payments

LBGLloyds Banking Group has become the first bank to go live with a new instant cross-border payments mechanism, provided by financial messaging co-operative, Swift. The UK bank has turned on, Swift gpi Instant, which enables tracked international payments to be sent in seconds.

The new Swift gpi Instant service works by connecting to the real-time domestic payments infrastructure in the relevant countries, such as the Faster Payments Scheme in the UK. Global payments to UK individuals and businesses can now be processed in seconds via Lloyds, with the service also providing clarity on fees and timeframes.

The gpi Instant service is an important step forward for Swift and it is also something of a coup for Lloyds to be the first bank globally to provide it. The launch follows a successful pilot involving a number of major banks and a two-year PoC programme run by Swift and its global infrastructure partners. The development is an important one for Swift, as frictionless payments facilitated by newer, learner technology such as DLT, increasingly provide a highly efficient, cost-effective alternative to the existing infrastructure (see: Via and FIS push blockchain-based B2B payments).  

Posted by: Jon C Davies

Tags: LBG  

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Thursday 03 December 2020

Civica acquires Equiniti HR for £13m

CivicaCivica is having a very busy end to the year, adding Equiniti’s HR and payroll business to the two acquisitions it made in November (see here and here). HR Solutions is expected to generate £5.9m revenue and £1.7m EBITDA this year, whilst last year the business processed over £4bn of payments and issued nearly 3m payslips.

Equiniti has been having a pretty tough time of it of late (see 2020 continues to prove difficult for Equiniti) and has been looking to offload “non-core assets” for a while, after several years of acquisitive growth. They have booked a c.£10m accounting profit on the disposal which will of course help the balance sheet.

For Civica, this looks like a good piece of business – Belfast-based Equiniti HR has a strong public sector client base including being one of the NHS’s three main payroll providers. Existing clients include the likes of: Camden & Islington NHS Trust, South Warwickshire NHS Foundation Trust, the Met Office and the Scottish Parliament. The potential to upsell Civica’s wider suite of digital offerings is clear whilst adding further HR & payroll capability to its stable certainly won’t hurt. The deal also helps Civica ramp up its Northern Irish presence.

Not only has Civica been very busy with the Cheque book but has instigated a brand refresh, designed to support the acceleration of digital public services with the theme of “Ideas into Action”. Civica has a been increasingly visible presence in the UK SITS market for a number of years now, growing the business and becoming an increasingly prominent player. Focusing on digital public services makes a lot of sense given the experience of 2020 and where Civica is already gaining most traction.

Posted by: Marc Hardwick

Tags: publicsector   acquisition   brand   hr   payroll  

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Thursday 03 December 2020

Alexander Mann Solutions on the up with The Up Group

logologoA year into his appointment as only the second CEO in the history of OMERS-backed, RPO-focused recruitment firm, Alexander Mann Solutions (see New CEO for Alexander Mann Solutions), David Leigh has executed the second step of his growth plan with the acquisition of pan-European ‘digital’ executive search firm, The Up Group from its private equity owner, Livingbridge. Terms were not disclosed.

Founded in 2007 by entrepreneur Clare Johnston, Livingbridge invested in The Up Group in 2016, whose ‘digital-focused’ clients include the likes of Skyscanner, WorldRemit, Airbnb, PE Photobox, Graze and Trainline, Google DeepMind, JUST EAT and TripAdvisor (wow – some list!).

This is a smart move by Leigh. Until now Alexander Mann Solutions (AMS) has mainly been working at the operational end of the recruitment market. The Up Group (TUG) marks AMS’ entrée into the premium executive search arena with a ready-made client set of the ‘here and now’.

The trick, as ever, will be to ‘connect the dots’ to drive new business for AMS from its connections through TUG without diluting the latter’s brand.

Posted by: Anthony Miller

Tags: acquisition   recruitment  

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Thursday 03 December 2020

Oxford City turns to Civica for revs & bens

Civica logoCivica has secured a new local government revenue and benefits deal. The latest partnership will see the public sector software specialist deliver a new digital platform for Oxford City Council in a 10-year deal worth £545,800.

Oxford’s Revenues and Benefits contact centre team received more than 56,000 calls in 2019-20, with a caseload of almost 15,000. During that period, the department paid out an estimated £42m in Housing Benefit and £12m as part of the Council Tax Reduction Scheme, while collecting £96m in Council Tax and £108m in Non-Domestic Rates.

The council will use Civica's OPENRevenues software to improve document management and workflow, and to simplify services. The new system will help improve the ability of citizens to self-serve online, including access to all their information and claim updates in one place. It forms part of the council's digital transformation efforts, including modernising and automating systems for employees.

The contract with Oxford follows Civica's recent agreement with Cotswold District Council, Forest of Dean District Council, and West Oxfordshire District Council (see Civica secures shared service revs & bens deal).

Posted by: Dale Peters

Tags: contract   software   councils   revs&bens   local+government  

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Thursday 03 December 2020

Struggling Monzo shores up funding with additional £60m

MonzoUK challenger bank, Monzo, has received a cash injection of £60m as it looks to shield itself from the impact of the economic downturn. The investment was provided by Novator, Kaiser, and TED Global, and included a contribution from existing investor, Goodwater.

The latest funding follows hot on the heels of £55m raised by the bank in the summer, with Monzo struggling in the face of the pandemic. Earlier this year, the bank was forced to cut jobs as full-year losses doubled to £115m. Founder, Tom Blomfield also stepped down and was replaced as CEO by TS Anil.

Despite close to 5m customers now onboard, Monzo has previously been candid about its challenges, warning of “significant doubt” over its ability to continue as a going concern (see: Monzo lays bare its problems as losses mount). Monzo also has 60k business users on its books and 100k users of its premium (paid-for) current account services. The latest funding is designed to provide working capital for the bank to maintain its operations well into 2021.

Monzo’s woes have been in stark contrast to fellow UK challenger bank, Starling, which recently announced that it was moving into profit (see: Starling soars to new heights). Whilst Monzo has been similarly successful in growing its footprint, running its operations in a profitable manner remains an elusive goal, and it would be wrong to lay the blame for the bank’s troubles entirely at the foot of COVID-19’s door.

Posted by: Jon C Davies

Tags: funding   financialservices   banking   monzo  

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Thursday 03 December 2020

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Posted by: HotViews Editor

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Wednesday 02 December 2020

DWP signs new deal with AWS

AWS logoThe Department for Work and Pensions (DWP) has established a new partnership with Amazon Web Services (AWS). It has signed a G-Cloud 12 call off contract with the cloud services provider with an indicative total control value of £57m over its three year term.

The deal follows last month's announcement that AWS had agreed a three-year “One Government Value Agreement” (OGVA) with the UK Government. This enables participating central government and wider public sector organisations to be treated as a single client, resulting in greater cost savings for cloud deployments (see AWS signs MoU with UK Government).

DWP has been working with AWS since 2016. It signed a two-year strategic partnership with the company in August last year, but has entered into this new agreement to future-proof hosting delivery and to take advantage of preferential commercial terms available under the OGVA.

As part of the new agreement AWS will provide cloud compute infrastructure, Bring Your Own Licensing (BYOL), managed and professional services, support and training. The minimum spend for the agreement is £57m but the contract shows the deal could be worth up to 150% of this spend commitment (c.£86m). DWP is expected to increase its cloud consumption as a result of continued migration from its on-premise environments.

In 2019-20 DWP spent £13m with AWS via G-Cloud and in the first half of the current 2020-21 government year it had invested £9.8m in its services. Its recent rate of spend is broadly consistent with the minimum spend value under the new terms, but the maximum spend figure would represent a significant uplift. DWP was AWS' third largest central government customer last year, so it was important for the business to secure its place at the heart of the Department's digital transformation efforts for the next few years.

Posted by: Dale Peters

Tags: contract   cloud   government   compute  

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Wednesday 02 December 2020

Salesforce's $27.7bn Slack acquisition heralds new style digital collaboration

Salesforce logoIn what is far and away Salesforce’s largest acquisition as well as being one of the biggest in in the software sector in recent years, Salesforce has acquired collaboration player Slack for $27.7bn, confirming the rumors that have been swirling over the past week. 

Salesforce CEO Marc Benioff described it as a match made in heaven and certainly the gains are clear to see. Salesforce gets access to a collaboration productivity platform that includes video conferencing, messaging, file sharing and workflow and it will become the interface for the Salesforce 360 platform that unifies customer records from across Salesforce clouds into a unique customer id. Slack will play a significant role in enabling Salesforce’s view of the work from anywhere world. Even more strategically it expands its sphere of influence, providing capabilities that position Salesforce to take on Microsoft (and Oracle, SAP) more directly in broader business applications areas. 

Slack logoSlack will benefit from the breadth of Salesforce’s footprint and a level of market access it has not been able to secure on its own, in large part because it has been squeezed by Microsoft and its competing Teams offering. Microsoft mooted acquiring Slack a few years ago but in the end put its efforts into building Teams, which is scooping up market share, aided by its position within Office 365. Slack has filed a complaint with the EU around the effect of its inclusion in Office 365.

From a ultra-promising start Slack has struggled – it’s IPO was lackluster, its valuation has slumped across 2020 and it has reported losses throughout the year too. While it has benefitted from the C-19 remote work movement, it has not achieved the success Teams and Zoom have. Microsoft’s decision to put its efforts into building a competing collaboration tool put Slack under sustained pressure. However, as part of the Salesforce portfolio it has an opportunity to shine again. 

With Slack set to play a significant role in enabling Salesforce’s view of the “work from anywhere world”, the Salesforce/Slack combination could herald the start of more extensive business apps market push and new-style of digital age collaboration. It also brings two rich sets of tech and extensive ecosystems together.

The acquisition put Q321 results into the shade but Salesforce delivered a 20% revenue lift to $5.42bn, albeit it with much deeper net losses of $1.1bn vs. $109m (see here). It is looking at 17% revenue growth in Q4 and similar in Q1 and has raised FY21 revenue guidance to $21.10bn- $21.1bn, an approximate 23% increase. 

Posted by: Angela Eager

Tags: results   acquisition   software  

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Wednesday 02 December 2020

Brain in Hand gets SBRI Healthcare Award

BIH logoWe were delighted to hear that UK SME Brain in Hand has won an £800k Small Business Research Initiative (SBRI) Healthcare Award to assist with the continued development of its app, which aims to revolutionise support services for autistic people. The award is part of an NHS England & NHS Improvement funded initiative that provides investment to innovators to develop solutions that solve existing unmet needs faced by the NHS.

Founded in 2010, Brain in Hand aims to transform the model of care for autistic people who are supported by the NHS and social care to help them live more independently. Its system - a digital solution that puts people in control of their own care - currently operates across 40 different UK locations. Typically, projects are situated within local authority transition teams or adult social care. Brain in Hand is also approved by the Department for Education as a tool for supporting students through higher education and thousands of autistic students use the system.

The SBRI funding will enable Brain in Hand to work with NHS Greater Huddersfield Clinical Commissioning Group, NHS North Kirklees Clinical Commissioning Group, and the South West Yorkshire Partnership NHS Foundation Trust to test and develop a system-wide approach for broader national deployment in health and social care. In addition, the SME will undertake an observational study to demonstrate the system’s effectiveness to support the commercial spread and adoption of the system. 

For more on trends and suppliers in the UK health and care sector PublicSectorViews subscribers should check out our latest UK Health Supplier & Market analysis report.

Posted by: Tola Sargeant

Tags: funding   socialcare   innovation   healthcare  

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Wednesday 02 December 2020

Backers comply with Kamma’s funding needs

logoSitting at the intersection of Proptech and Regtech, London-based Kamma is essentially a compliance management platform for the rental housing market.

Basically, Kamma runs a continuously updating database of property licensing regulation and legislation and matches it against clients’ rental portfolio to alert them if they need to take action to comply with any changes. Neat!

Incorporated in 2015 and launched in 2018, Kamma has raised a further £1.6m in a funding round led by Triple Point, along with Pi Labs and M7 Structura. This brings Kamma’s total funding so far to £2.2m.

Kamma targets letting agents, mortgage lenders, local authorities, private landlords, receivers (!) indeed anyone with skin in the property rental game. Clients include well-known brands such as Chersteron’s, CBRE and Haart.

I can’t see anything about Kamma’s business model – I would imagine they charge clients a subscription fee based on the number of properties they want to monitor for compliance. The proposition is that this will cost significantly less than the fines clients would have to pay if they get caught with non-compliant properties.

Everything about Kamma seems so sensible and business-like except for one thing – its website chatbot “Dolly” the sheep!

Posted by: Anthony Miller

Tags: funding   startup   PropTech   RegTech  

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Wednesday 02 December 2020

HPE revenue “rebounds” in Q4

HPEHewlett Packard Enterprise (HPE) saw a return to pre-pandemic levels in Q4 with revenue matching the top line of the equivalent period last year. That marked a 5% (constant currency) uptick on Q3 to $7.2bn. Total FY20 revenue was down 6% to $27bn. The firm made a net loss of $322m but says it has “increased confidence in profitability going into Q1”.

Antonio Neri, President and CEO, said the firm saw a “notable rebound in our overall revenue” in Q4, particularly in key growth areas. Also of note is that the firm is raising its FY21 EPS guidance and relocating its HQ from Silicon Valley to Houston, Texas.

Performance highlights include High Performance Computing and Mission Critical Systems (HPC & MCS), which saw annual revenue growth of 5% (it was the only segment to grow the top line). In terms of profitability, Advisory and Professional Services added 4.8 points yoy (although revenue reduced 6%) while Intelligent Edge added 4.3 points yoy (revenue was down 1% yoy to $2.9bn).

HPE’s big strategic move is to become an as-a-Service business by 2023, which is about a whole lot more than just tweaking the portfolio. Major changes are going on inside the firm, some of which will require staff to take a fundamentally different approach to how they sell to customers. The firm says as-a-Service orders were up 20% in Q4, covering offerings such as GreenLake on-premise consumption platform and Aruba as-a-Service.

Like elsewhere, the shift to as-a-Service will be a highly challenging pivot in the UK. One very notable step forward was the MoU signed with UK government, which provides HPE with the opportunity to take GreenLake into the Public Sector. The competition is of course fierce, with AWS, Azure and Google also on the scene. The market generally is in transition, shifting from traditional on-premise services to more flexible, automated and cost-efficient hybrid and multi-cloud services. The challenge for HPE is to keep on improving the execution levels while focusing more so on the business and operational challenges faced by customers and the outcomes they are striving for.

Posted by: Kate Hanaghan

Tags: results   hybrid   as-a-service   EdgeComputing  

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Wednesday 02 December 2020

Slimmed-down i-Nexus braced for slow recovery

LogoAs expected (see here), FY20 proved to be a challenging time for Coventry-based strategy execution software platform provider i-n.exus Global plc. Turnover for the twelve months to 30th September fell by 14% yoy to £4.08m with the downturn accelerating during the second half of the year. H220 revenues declined by 26% yoy and 20% sequentially.

Better news was to be found on the bottom line where losses were reined back from £4.33m in FY19 to just £2.38m in this last financial year. This was achieved through a series of actions including redundancies, a now reversed 15% salary reduction for all employees and use of the Government Furlough scheme. i-Nexus did, however, maintain product development momentum throughout the period bringing a considerably enhanced release its platform to market during the Summer. As at the beginning of October 2020, the company’s total monthly expenses run rate had been reduced to half the level at the same point twelve months earlier.

i-Nexus has also recently been able to shore-up its working capital reserves. The Group’s cash & cash equivalents at the period end had dwindled to just £0.12m (FY19: £1.53m). This position was significantly enhanced shortly after year end with the successful conclusion of a fund raise to secure £1.235m net of expenses by way of a Convertible Note.

Looking forward, the company views FY21 with a degree of cautious optimism. Contract wins in the last couple of months have already lifted the monthly recurring revenue rate by 4% and the sales pipeline is reported to back on an upward trajectory. The challenge for i-Nexus now is consistently being able to close new deals on a timely basis. Strategy execution software is, however, a specialist area for which demand may well remain fickle in the uncertain economic times ahead.

Posted by: Duncan Aitchison

Tags: results   software  

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