Sopheon continues to show signs of the business improvement that have been apparent over the past year but is still overhauling the corporate structure to improve its balance sheet.
On the business side, innovation lifecycle management software and services provider is building on good H1 growth (see here) with additional revenue visibility. From the period July 1 to date, visibility has risen from £9.9m to £11.7m for the full year and is expected to grow further. For the same period last year visibility stood at £9.6m and full revenue came in at £10.3m, so there is a clear improvement in position. Business is coming from new as well as existing clients and Sopheon is investing in additional headcount to support growth. It has a tricky balancing act here its business reported revenues are sensitive to the timing and value of individual order events so profitability could be impacted.
On the corporate side it is considering a restructuring operation that will include a reduction in capital to eliminate the bulk of accumulated deficit on the profit and loss account, and share consolidation. The aim is to improve the profile of its balance sheet. It had transferred it listing from the regulated market operated by NYSE Euronext Amsterdam to its exchange-regulated market, NYSE Alternext in September to reduce its regulatory burden and benefit from tax exceptions. This proposed restructuring would also help it improve its foundations.