Published on: May 15, 2020
A confident view in difficult times
Although Sopheon is withdrawing guidance for forecasts (and we remove FY 2020E estimates), today’s update reflects a number of positive comments on current trading and the robust nature of the Group’s balance sheet. The pipeline remains at a similar level to the FY 2019 year end (when it was some 50% up year-on-year) and retention levels for Annual Recurring Revenue (ARR) have remained good so far this year. The Group confirms that a number of markets are showing resilience to the crisis and existing customers are re-commencing orders. Sopheon held net cash of $21.8m at the end of April 2020 and, despite prudent cost containment, is to proceed with the previously-declared dividend of 3.25p for FY 2019 – which we take as a clear and positive signal of overall management confidence.