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Monday 26 February 2024

ExactTrak secures £1m for patented security hardware

logoCheltenham based UK security supplier ExactTrack has raised £1m for its patented hardware technology that secures laptops and mobile devices even when a device is switched off. Its solution is targeted at secure environments in government and defence, as well as some commercial applications in industries such as healthcare or financial services.

The latest funding round includes a £500k investment from UKI2S’s £18m MOD-backed defence & security seed (D2S) fund alongside several angel investors and existing backers. The company says it intends to use the funds to further develop its post-quantum cyber threat solution. The company has raised around £3m in funding to date, and was also part of the GCHQ Cyber Accelerator in 2017. The company has also previously won contracts with Advance Micro Devices (AMD) and Airbus Defence and Space.

ExactTrak is not a new company, it was founded back in 2008 by CEO and founder Norman Shaw and in 2011 launched Security guardian, a small USB memory stick which encrypted and tracked mobile data. Its solution has evolved significantly since that point and is now embedded into devices, with an emphasises on built-in hardware as opposed to conventional software solutions. The company has 19 granted international patents, including what it describes as a “Mission Impossible” patent, used to destroy compromised memory remotely. The company has also strategically collaborated with Dell, leveraging technical support and forging pathways for remote management within laptops that operate independently.

Its current flagship product, SmartSafe, remotely monitors devices and performs cyber surveillance when the machine is switched off. Features include location tracking and remote data encryption. SmartSafe works independently, removing interaction with a device’s operating system and bios to reduce vulnerabilities, and can be embedded into a range of devices from laptops and tablets to IoT items and drones. It requires no internet to work, and provides anti-tamper technology, where data physically destructs in 3 seconds when compromised. A central secure manager offers global visibility, reporting and remote control of devices, equipment and data, even when they’re turned off.

Posted by: Simon Baxter at 09:52

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Monday 26 February 2024

Made Tech: Signs of growing pains?

Made Tech Logo Made Tech’s results for the six months to 30th November 2023 (H1 2024) reveal quite a change in fortune for the mid-sized provider of digital, data, and technology services to the UK public sector. Revenues declined by 7% to £19.1m. This follows a five-year period in which the CAGR stood at a highly impressive 80% (Made Tech: Strong FY23 but cautious on FY24 | TechMarketView). Made Tech points to pressure on client budgets and changes in project scope, both of which have been exacerbated by the geopolitical environment. As a result, the company has slightly reduced its revenue expectations for the full year; it had previously (at the end of FY23) predicted a flat performance.

The positive story is around profitability. Adjusted EBITDA rose 180% to £1.4m, representing a profit margin of 7.3%. The focus on creating an “efficient right-sized cost base”, which include reducing headcount from 484 (at the end of H1 2023) to 388, driving operational efficiencies, and increasing utilisation is having an impact. However, it still made a statutory loss before tax (LBT) of £1m (albeit lower than the £1.7m loss in the comparable period in FY23).

The forward picture is interesting. Sales bookings were down a substantial 61% to £12.6m (in FY23, sales bookings for the full year were £69.9m). Those sales bookings came predominantly from three clients: Department for Business and Trade; Government Digital Service; and Ministry of Justice, in contracts ranging from 1-2 years. Made Tech says that it expects peaks and troughs in its sales bookings, but this does seem like a particularly deep trough. On the other hand, the contracted backlog us up 28% to £61.3m (due to earlier signings of longer-term deals), underpinning expectations for both FY24 and FY25 (90% of FY25 revenues are covered by contracted backlog and the renewal of ongoing contracts).

It is our feeling that this is a company that is suffering from growing pains. Others in the UK public sector market have seen it become tougher, but we have seen  few suffer to this extent. Made Tech grew very quickly over the last few years. Now its focus is on investing in things that might not have been as necessary when it was a smaller entity. It is taking on more experienced people in its sales team, management team and commercial team, a new Chief Financial Officer and Chief People Officer have been appointed to the Exec Team, it has been successful in investing to gain positions on important frameworks (like HMRC DALAS, FCA Digital, and MOD DIPS), it is building proprietary software with a view to a bettter revenue mix, and it is concentrating more heavily on employee experience and retention. Most importantly it knows it must deliver, with excellence, the business it has already taken on. The good news is that it has the strong balance sheet to enable it to invest and help it through what looks like a period defined by ‘growing pains’. 

Posted by: Georgina O'Toole at 09:48

Tags: results   itservices   digital   IP   costmanagement   profitability   public sector  

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Monday 26 February 2024

Ensilica confident for H2 and beyond

ensAbingdon-based Ensilica’s H1 results (for the six months to end November) show the firm grew revenue by 11.5% (to £9.6m) on the back of contract momentum during the period.

Contract highlights include deals in both the US and Europe, alongside operational progress, including investment in IP, appointing a new CFO, and reduction of dept. EBITDA reduced during the period reflecting ongoing investment.

Ensilica, which IPO’d in 2022, provides custom ASIC (Application Specific Integrated Circuit) design and supply for OEMs and system houses. It has a focus in the telecommunications, automotive, industrial, and aerospace sectors, matching the demand for chips that can support data encryption, signal processing, and sensor interfacing.

The firm’s approach is to stay very focused on high-growth/tech-driven sectors and it is confident that it can look forward to the remaining six months of the year building on the “sizeable contract wins” it has already won in H2.

Posted by: Kate Hanaghan at 09:45

Tags: results  

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Monday 26 February 2024

*NEW RESEARCH* Uptick in UK SITS M&A activity in Q4 2023

2023Q4 chartMerger and acquisition (M&A) activity in the UK software and IT services (SITS) sector reversed several quarters of decline in Q4, with an uptick in both acquisitions by and sales of UK SITS companies. This is according to data from Silverpeak, the mid-market technology specialists that represent European growth businesses in M&A and financing transactions.

There were 77 acquisitions by and 75 sales of UK SITS companies in Q4 2023, compared to 62 and 68 respectively in Q3. Note that this data includes deals announced, as well as those closed.

Analysis of the data shows that most of the upturn is accounted for in intra-UK deals. And whilst some upturn is expected in Q4 relative to the quieter summer months, acquisitions by UK buyers climbed above sales by UK vendors for the first time since 2020, suggesting a renewed confidence by UK SITS companies after a difficult year in 2023.

Subscribers to the TechMarketView Foundation Service and UKHotViews Premium can read more by downloading the Q4 2023 edition of IndustryViews Corporate Activity.

Posted by: Tania Wilson at 09:40

Tags: M&A   acquisitions  

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Monday 26 February 2024

Capita extends long-running contract with NI Education Authority

CapitaCapita has extended its long-running contract with the Northern Ireland Education Authority for a further year (until the end of March 2025) in a modification worth £33m.

The initial Education Network for Northern Ireland contract ran from 2012 for five years, and has since been extended for 2+3+2 years prior to this additional year. The total value of the (13-year) engagement now comes to £546m. This latest extension is designed to cover the continuation of the existing managed service arrangements, with some functionality changes, and permit transition to a new contract.

Capita was well-placed in both TechMarketView’s Education Suppliers, Trends, and Forecasts 2023-2026 and Local & Regional Government Suppliers, Trends, and Forecasts 2023-2026 reports, and this represents its second contract extension  in a month (after adding three years to its Westminster City Council contract for revenues and benefits at the end of January 2024, see Capita extends tax, revs & bens contract at Westminster).

Posted by: Craig Wentworth at 09:36

Tags: contract   NI   extension  

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Monday 26 February 2024

Sheffield Hallam selects Access for SaaS-based HR and payroll

AccessSheffield Hallam University has awarded a contract to The Access Group for its SaaS-based People XD HR and payroll software via the G-Cloud framework. The deal is worth £1.5m over three years, with an option to extend by a further year.

Access’ focus in the Education sector has tended to lie more with schools and FE (its education school management software is currently in use in just over half of academies and a third of maintained schools in the UK). However, the company has seen recent success in HE too (such as a £1m deal with the University of Ulster, also for a cloud-based HR payroll system in August 2023).

The Access Group featured as one of our Suppliers on the rise in TechMarketView’s Education Suppliers, Trends, and Forecasts 2023-2026 report, an accolade it also received in our recent Local & Regional Government Suppliers, Trends, and Forecasts 2023-2026 report too.

Posted by: Craig Wentworth at 09:05

Tags: contract   payroll  

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Monday 26 February 2024

Temenos commissions independent review

TemenosAt Temenos' recent Capital Markets Day, Non-Executive Chairman, Thibault de Tersant revealed that the company would be commissioning an independent third-party review of the unsubstantiated claims made against it by prominent short-seller, Hindenburg Research (see: Temenos delivers strong growth and robust rebuttal). 

Following last week’s announcement, Temenos has now confirmed that the Board has retained the services of Alvarez & Marsal, a leading global professional services firm, with expertise in forensic accounting and investigations, Schellenberg Wittmer as Swiss counsel and Sullivan & Cromwell as US counsel. The Temenos Board has also formed a Special Committee led by Thibault de Tersant to support the  investigation.

The most serious of the Hindenburg’s accusations relate to accounting and revenue recognition practices whilst the firm has also sought to highlight a number of implementations and partnerships that have faced significant challenges. Alongside its response the Temenos Board has also reaffirmed its belief that the company is running a sound business with robust financial controls. In a statement, Thibault de Tersant, stated that “Trust in our business for all stakeholders is paramount and it is our fiduciary duty to provide a thorough robust examination of all allegations raised."

For my part, I have generally heard good things about Temenos and its products and services from my many conversations with the company's clients and partners over the years. Whilst no vendor that has been involved in as many implementations as Temenos will have escaped entirely unscathed, the customers that I have spoken to on a one-to-one basis have described a vendor that acts in good faith and has been a genuine partner. Ultimately, I am sure that the independent third-party review will shine a light on where the truth really lies.

Posted by: Jon C Davies at 08:57

Tags: banking  

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Friday 23 February 2024

Tribal's contract dispute with NTU – an update

TribalEducation software and services provider Tribal Group has announced a further development in its ongoing contract dispute with Singapore’s Nanyang Technological University (NTU).

As we reported last year, delays with the NTU project cast a shadow over the company’s FY22 and H1 2023 performance (see Tribal performance hit by NTU contract delays and Tribal performance overshadowed by NTU uncertainty), with NTU purported to have terminated its £17m contract with Tribal in March 2023, before pursuing the firm for damages a month later.

Nearly nine months on, Tribal has now announced that it’s entering into a mediation process with NTU, with the company declaring that it “intends to vigorously dispute” NTU's demand for damages.

The intervening months have been eventful for Tribal too, with US-based Ellucian announcing a planned takeover of Tribal in October 2023 (see Ellucian to buy Tribal) – a move which prompted the UK’s Competition and Markets Authority (CMA) to consider a formal Phase 1 merger investigation into the matter, given that the proposed deal would see a combined company occupy both the #1 and #2 spots in the UK HE sector for student information systems (see Ellucian’s proposed acquisition of Tribal – CMA update). However, that attempt was ultimately thwarted by Tribal’s largest shareholder, US-based Jenzabar (which opposed the sale from the outset), increasing its stake from 21% to 26.45% in November 2023 – taking it above the 25% threshold of voting stock required to block the deal.

Posted by: Craig Wentworth at 09:46

Tags: dispute   takeover   damages  

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Friday 23 February 2024

Another impressive year of growth for Telefónica Tech

logoTelefónica Tech saw FY23 revenue grow 26.7% yoy to €1.88bn. This is the third consecutive year growing above the overall market, and the business continues to invest in growth, bringing onboard new partners, and taking a more strategic approach to targeting high growth opportunities.

The revenue mix is well-balanced in services (with a high weight of revenue from managed & professional services & T.Tech owned platforms). Revenue from both Cybersecurity & Cloud and IoT & Big Data reached €1.6bn (+24% yoy) and €259m (+46% yoy), respectively. For Telefónica Tech UK&I we understand the business grew in the low double digits, with another impressive year of outperforming the market, and winning a number of new name clients. Looking ahead there are big plans for the UK&I business in FY24 including the launch of new cybersecurity capabilities, levelling up its cloud capabilities with Azure and other hyperscalers, leveraging AI Copilot solutions in the workplace, as well as enabling low code app development and automation.

T. Tech now operates with global geographic units (Spain & Americas, UK & Ireland and Central Europe), as well as Global Service Lines (GSL) as a transversal unit, IoT and BizApps GSL were launched in mid-2023. Across the global business Cybersecurity & Cloud capabilities saw the launch of new services in Q4 including an integrated security offer with Fortinet, Checkpoint and Palo Alto, multi-technology flexWAN, and cyber intelligence provided from its Digital Operations Centres (DOC) based in Spain and Colombia.

In Big Data, T. Tech has developed solutions to help embrace Generative AI while addressing cost, ethical and security issues, combining open-source and proprietary Large Language Models (LLMs) as well as cloud-based, hybrid and on-premises deployments. IoT capabilities were reinforced in Q4 including; a smart water solution for the digitalisation of the water cycle; an electro mobility solution for fleets improving charging infrastructure; and an expansion of its drone value proposition with energy infrastructure inspection and warehouse inventory solutions.

Posted by: Simon Baxter at 09:32

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Friday 23 February 2024

Alight increases BPaaS focus

alightFY 2023 results out this week from Alight saw ‘under the radar’ Finance and HR Business Process Services (BPS) specialist increase revenue by 8.9% over the prior year to $3,410m. Of late, the group has focused on its BPaaS proposition which grew 34% to $756m, representing 22.2% of total revenue compared to 18% in FY 2022. Adjusted EBITDA grew 12.1% over the prior year to $739m.

The improvement in revenue growth was driven by a 9% increase in ‘Employer Solutions’ with stronger sale volumes and the 2022 acquisition of absence management provider ReedGroup playing a part, as well as a 13.5% growth in Professional Services revenue, largely due to increasing project size.

Looking forward, Alight announced that the firm had hired financial advisors to conduct a “strategic portfolio review” but with no further detail as to what this would entail. We await the outcome. Financially, the Group expects BPaaS to continue to drive growth at over 15% this year with total annual revenue growth expected to slow to between 4-6% driven by the timing of its 2023 bookings and the exit from its Hosted business.

Posted by: Marc Hardwick at 09:01

Tags: results   bpaas  

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Friday 23 February 2024

Marching to our goal for The Prince's Trust!

Future Steps montageA big Friday shout out to all the 'Future Steppers' across the tech sector attempting to do 10,000 steps a day (or more!) every day in February in aid of The Prince’s Trust!

With a week to go, our TechMarketView teams – TrailMarchVictory, Legs Miserables and Street Striders - have collectively racked up nearly 3 million steps.

We can testify to the fact that there have been some very wet days this month, but the sunrises are getting earlier!

A big thank you to all our sponsors so far for cheering us on. To donate to help us march to our target for this very worthy cause you can visit our fundraising page.

Posted by: Tola Sargeant at 08:56

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Friday 23 February 2024

Bytes CEO resigns, shares tumble

BytesSurrey-based Bytes Technology Group CEO Neil Murphy has made a shock exit from the firm after over 26 years with the company (and four years at the top).

Murphy resigned with immediate effect after revealing previously-undisclosed share trades (totalling around £3m, across 100+ transactions across a near three-year period) to the Board.

Bytes shares were hit hard, with the company initially losing nearly 20% of its value in London (falling 609.5p to 410p) when the news broke mid-afternoon on 21 February, though stock recovered to 537p by the close of the day, and has since climbed to 551.5p (today’s opening price). However, that’s still a -10% hit on the firm’s pre-announcement valuation.

Bytes has sought to reassure the market in advance of its trading update for FY24 (ending 29 February 2024, due to be published in March), saying that performance has been “in line with expectations”. Interim figures (published in October) showed Bytes’ H1 2024 revenue climbing 16.3% yoy to £108.7m during the period.

Samantha Mudd (a Bytes Executive Board member since July 20230, and Managing Director of Bytes subsidiary Phoenix Software for nearly a decade – almost half her tenure with the firm) has taken up the reins as interim CEO for Bytes.

Posted by: Craig Wentworth at 08:52

Tags: shares   resignation  

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Friday 23 February 2024

TCS expands its relationship with the Co-op

TCSTCS is extremely good at growing acorns into oak trees, nurturing, developing, and expanding contracts over the long term. The latest relationship to benefit from this modus operandi is with the Co-operative Group.

TCS has worked with the Co-op for the last 14 years, supporting several transformation initiatives including in the retail business, a core system transformation and within the franchise programme, all designed to help create more revenue opportunities and speed up time to market.

The new expanded relationship will see TCS help move Co-op from a traditional data centre model to a managed, scalable cloud environment powered by TCS Enterprise Cloud. This migration to a scalable cloud model is designed to help future proof growth and capability requirements within the Co-op whilst reducing energy usage. TCS will also manage the hybrid cloud and SaaS estate for resilience and agility. No financials of the deal have been released.

Rob Elsey, CDIO of the Co-op commented “We are delighted to extend our strategic partnership with TCS in enabling us to meet Co-op’s business objectives and serving and supporting our member-owners who are at the very heart of our business. They have been a great partner, aligned with our growth priorities and future-proofed our infrastructure as we set on the course for continued future expansion – supporting change and transformation in how we work as a business and in our cloud journey.”

This looks like another solid deal for TCS UK and Ireland, the standout performer in recent quarterly results (by geography). Last month, TCS extended its partnership with Aviva, the insurance, wealth, and retirement provider, for 15 years.

Posted by: Marc Hardwick at 08:17

Tags: contract   itservices  

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Friday 23 February 2024

*UKHotViewsExtra* Temenos delivers strong growth and a robust rebuttal

TemenosLeading banking software provider, Temenos, hosted its annual Capital Markets Day in London earlier this week, with the event following the release of the company’s latest full-year results (see: Excellent Temenos results exceed expectations). The financials for the twelve months ended 31 December 2023 comfortably exceeded Temenos’ previous guidance with Annual Recurring Revenue (ARR) up 16% to $730m and total revenue up 5% to $1bn. Software licensing was up 10% at $443m, SaaS was up 25% at $205.1m and subscription revenue was up 52% at $160.4m. Meanwhile, Temenos delivered EBIT of $199.4m (representing growth of 22%) and Free Cash Flow of $243m (up 26%).

During the event, Temenos provided a robust rebuttal of the unsubstantiated claims made by prominent short-seller, Hindenburg Research, during its attack on the company last week. Addressing the audience, Temenos’ Non-Executive Chairman and former Audit Committee Chair, Thibault de Tersant, calmly went through a number of the accusations, firmly dispelling the various assertions. Tersant also revealed that, to reassure Temenos shareholders and the investor community, the board would be appointing two leading professional services firms (one legal and one accounting) to review and report on the claims.

TechMarketView clients can learn more by downloading Temenos delivers strong growth and a robust rebuttal  If you are not already a subscriber but would like to learn more or gain access to this UKHotViewsExtra or any other of our insights, please contact Deb Seth for more information.

Posted by: Jon C Davies at 07:00

Tags: banking   Temenos  

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Thursday 22 February 2024

NVIDIA smashes Q4/FY expectations

nvidMarket watchers last night breathed a huge sigh of relief on the back of NVIDIA’s FY/Q4 results, which saw it smash through Wall Street’s expectations.

Fourth quarter revenue was $22.1bn, up 265% (from $6.0bn) on the previous year (and see Q3 results here). For the year (FY24), revenue hit $60.9bn, up a monster 126% over FY23. Growth in the Data Center segment was even stronger at 217% to $47.5bn (i.e., c.78% of total revenue) due to higher shipments of its Hopper GPU platform, used for the training and inference of large language models. Automotive, Financial Services, and Healthcare were highlighted as driving strong demand, but there has been significant growth in other industries as well.

Jensen Huang, founder and CEO, said: “Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations.” Looking forward, he told analysts: “Fundamentally, the conditions are excellent for continued growth”, with the firm forecasting revenue of $24bn (plus or minus 2%) for Q1.

NVIDIA shares rocketed through 2023 along with many other tech firms (see our extensive HotViews archive for all the background analysis), but its size and astonishing growth have put it directly under the spotlight. Tech, and indeed the performance of the whole of the S&P 500, is impacted by whichever way NVIDIA swings. Investors had been nibbling at their nails over the past few days wondering if the AI chip firm really could smash through expectations for growth and profits. And it delivered. Selloffs in recent days were countered as shares rose in afterhours trading.

AI is dominating many of the conversations we are having with our clients right now – both buyers and suppliers. However, make sure you stay closely tuned to our ‘behind the paywall’ research for the realistic view on adoption and progress in the UK.

Read our forthcoming Market Readiness Index report for our views on just how well positioned the largest IT Services players are to deliver the solutions and services the market wants.

ESSENTIAL reading for TechMarketView subscribers: Artificial Intelligence: Market Trends, Use Cases and Suppliers.

Posted by: Kate Hanaghan at 09:45

Tags: results   chips   AI  

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Thursday 22 February 2024

SCC acquires Resonate

sccRigby-owned SCC has acquired Microsoft Teams specialist, Resonate.

With 150 people across Europe and India (60% are in Slovakia), Resonate nicely fills a gap SCC had in its portfolio around collaboration. It’s also another sign of SCC’s commitment to the Microsoft platform, which the firm has been building out over the years (e.g., in Azure and cyber).

The transaction works well for both parties. For example, Resonate will now gain access to Public Sector customers, while SCC can add the IP, skills/talent to its SCC Collaboration business. 

This marks the third acquisition for SCC in the past year (having bought UK VAR, Vohkus and digital engineering consultancy, Nimble). We now expect a period of focus around driving organic growth as Resonate is bedded in.

Founded by Sir Peter Rigby, the Rigby Group (which grew 16% in FY23) is home to a range of businesses, including hotels and airports – and of course, SCC. The Group was formed back in 1975, meaning it will hit a milestone birthday of 50 next year.

Posted by: Kate Hanaghan at 09:30

Tags: acquisition  

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Thursday 22 February 2024

Tagomics secures £6.7m to advance disease diagnosis

Tagomics logoMultiomic profiling technology company, Tagomics, has secured £6.7m in a funding round led by Calculus Capital. Illumina Ventures, IQ Capital, Agilent Ventures, Mercia Ventures and the MEIF Proof of Concept & Early Stage Fund (managed by Mercia Ventures and part of the Midlands Engine Investment Fund), Meltwind and OMX Ventures also participated in the round. 

The University of Birmingham spinout launched in 2022 to build on research led by Dr Robert Neely (now Tagomics’ Chief Scientific Officer), which investigated ways to identify early changes to the genome during cancer, a process called methylation. As existing tools were inadequate, the research team developed a new technology to accurately detect methylation, leading to three key patents. These patents formed the basis for the foundation of Tagomics, which is now based at Illumina Ventures Labs’ space at Granta Park near Cambridge.

Tagomics has since developed a platform that combines multiple “omics”, including genomics, epigenomics and fragmentomics and utilises bioinformatics and machine learning to provide greater understanding of human health and discover new markers of cancer. 

The investment, which follows a £1.6m pre-seed round led by IQ Capital and Start Codon alongside grant funding from Innovate UK, will enable Tagomics to accelerate its research and product development, discover new markers for disease diagnosis and deliver improvements in treatment of cancer and other diseases. 

Posted by: Dale Peters at 09:22

Tags: funding   startup   analytics   AI   genomics   healthcare   machine+learning   bioinformatics  

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Thursday 22 February 2024

Tracsis H1 performance down, but pick-up expected by year-end

TracsisTracsis, a provider of software and services to the rail and transport industries, has provided a trading update for the first half of its FY24 (ended 31 January 2024). The group expects H1 revenue to be in excess of £36.5m (down 7% on last year’s figures), with Adjusted EBITDA margin also down, to c.16% (H1 2023: 19%).

Performance has been affected by exceptional costs attributed to an operating model transformation programme running throughout FY24 (£1.3m incurred in H1, with around £700k set to fall in H2).

Despite H1’s revenue and margin shrinkage (on a year-over-year basis), the group expects margins to return to “historical levels” for the full year; anticipating that FY24 performance overall will pan out in line with market expectations (see Tracsis excited by PAYG ticketing opportunity). Tracsis cites good progress made in securing new contracts post H1-end, which will start to deliver revenue in H2; and a strong pipeline in its Rail Technology and Services Division, which more than doubled during the first six months of the FY.

New contracts (expected to underpin H2 growth) include the first pilot deployment of Tracsis’ Hopsta smart ticketing mobile app platform (now underway with a UK train operator), and the next significant funded phase of development work to enhance the RailHub safety and risk management platform.

The group's interim results will be announced on 24 April 2024.

Posted by: Craig Wentworth at 09:18

Tags: results   H1  

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Thursday 22 February 2024

UK regtech Napier AI secures funding of £45m

NapierAIUK financial services compliance specialist, Napier AI, has secured funding of £45m for its AI-driven financial crime prevention and regulatory reporting proposition. The funding is being provided by US-based alternative investment manager, Crestline Investors.

Founded in 2015, Napier’s technology is targeted at the banking, payments and wealth management sectors. The company’s compliance software provides screening for money laundering and can help to screen, monitor and identify, criminal or suspicious activities. Napier has enjoyed strong top-line growth since 2021 with revenue increasing by more than 30% year on year during this period. Napier currently has around 150 customers worldwide.

In partnership with the Financial Conduct Authority (FCA) Napier has catalogued various financial crime events and has mapped these into its solution using machine learning. Napier's AML solution features a no code user interface allowing business users to configure rules and comes with prebuilt workflows for investigation and case management.

Regulatory compliance represents a constant challenge for financial services organisations and often a considerable cost. Rising global tensions and the growth of AI have further contributed to the regulatory pressure faced by firms. As regulators look to digitalise their own processes, the bar is effectively being raised in terms of demonstrating proof of compliance. Against this backdrop, solutions such as Napier’s AI-driven offering are enjoying growing momentum.

Posted by: Jon C Davies at 09:15

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Thursday 22 February 2024

Fast-growing European IT services player buys into the UK

LogoConscia, a European specialist in networking, cyber security and cloudLogo services, has acquired Portsmouth-HQ’d digital solutions provider, ITGL. The move marks the entry by the Denmark-based business into the UK market. Terms of the deal have not been disclosed.

Founded in 2003 and headquartered outside Copenhagen, Conscia today has approximately 1000 employees across offices in Denmark, Sweden, Norway, Germany, Netherlands, and Slovenia. A Cisco Gold Partner, the company provides secure infrastructure solutions and 24-7 managed services to clients with complex network, data centre, cloud, IOT, and mobility demands. In FY23 Conscia saw its revenue increase by almost a third yoy to approaching £500m. The firm counts the likes of Centrica Energy Trading, LEO Pharma, Rockwool and Schiphol Airport amongst its clients.

ITGL, also a Cisco Gold Partner, opened for business some twelve years ago. The education sector-centric service provider’s 70 Hampshire and Oxford-based staff comprise specialists in collaboration, networking and cybersecurity technologies. For the year ended 31st March 2023 the firm’s turnover increased by 19% yoy to reach c.£27m. ITGL’s customers include the LSE, Imperial College London, Brunel University and Christie & Co.

Having bought 17 businesses in seven countries over the last decade, Conscia has a demonstrable track record of successfully driving geographic expansion through inorganic growth. It would seem unlikely that ITGL will be the only acquisition made in UK by this ambitious European player.

Posted by: Duncan Aitchison at 08:58

Tags: acquisition   cloud   iot   Cisco   cybersecurity   networking  

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