Invu – first profit in five years

Document management provider Invu is nibbling it way back to strength and although the rate is slow progress is apparent. The most welcome aspect of its full year results (to January 31 3012) was the return to profitability. It wasn’t much - £0.3m on revenue that was flat at £2.7m – but it is the first profit in five years and a long way from the £8.8m loss for the year ending January 2009.

Last year the loss was £0.3m (see here). The forward movement is the result of a long-term turnaround programme but management cannot afford to ease up as its position is still fragile. It points to a tough current and ongoing trading environment in the UK, which is its prime market. One of its most effective strategies seems to have been its OEM agreement with Iris, which embeds Invu in the SMB accountancy sector. Iris has become its most significant partner in terms of revenue. Invu is also ramping up its direct sales in order to attract more medium sized businesses. There was a yoy decline in licence sales (from £1.04m to £0.99m), which Invu needs to address but otherwise it was good to see this British battler making positive progress. However, with document management largely subsumed into broad base suites, Invu is a target for acquisition. Jon Moulton’s Better Capital backed m-hance (see here) is building a reputation for buying this type of company.