Modest revenue decline over Half Year: - 3.8 %
Strong Cloud growth: + 16 % SaaS* revenues
Turning point in Q2: + 2.2 %
Roll out of 'Target25' plan
Modest revenue decline: - 3.8 %
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Consolidated turnover at €6.61M saw a year-on-year decrease of 3.9%. This modest reduction is accounted for partly by an unfavourable base effect comparison (2012 first half posted turnover of €6.88M in contrast to €6.12M for the second half), as well as a sizeable drop in services revenues (Business Process Outsourcing, Consulting). These activities saw a drop of more than 34% during the first half of 2013 to €1.63M (2012H1: €2.47M). This decrease is attributed to the termination of a Business Process Outsourcing contract, and the exit from Treasury Consulting, deemed as non-strategic within the framework of the 'Target25' plan (see 30th April 2013 press release). The resulting turnover loss (€839K) curtailed overall growth by 12.5%.
STRONG CLOUD GROWTH: +16% SAAS REVENUES
In the context of a challenging economic backdrop, the success of the SaaS business model continues to prove itself, as demonstrated by strong growth in volumes processed. In excess of 16.3M invoices were loaded onto the Sidetrade Cloud during the first half of 2013 (2012H1: 14.6M), representing a 12% increase.
During this period, notable subscription-based customers to go live included Geodis Wilson (Denmark, USA, Indonesia and Mexico), Loxam Spain, Akzo Nobel France, Emfi and Layher. At the same time, commercial inroads achieved by the Sidetrade UK branch enabled successful go-lives for Linde Materials UK, INK (UK and Singapore) and Atkins UK.
SaaS subscription-based revenues for the first half of 2013 amounted to €4.33M, growing by 16% (2012H1: €3.73M). The product-mix revenue dynamic continues to develop favourably towards the Sidetrade Network business line, where revenues of €4.98M (including implementation services and training as well as subscriptions) make up more than 75% of Group turnover for the period. The Sidetrade Cloud continues to be the primary growth driver of the group.
TURNING POINT IN Q2: +2.2%
Resumption of growth from the second quarter
Despite the sizable drop in services revenues, Sidetrade posted second quarter revenues of €3.49M, an increase of 2.1% year-on-year, and 11.65% over the previous quarter. In a difficult economic environment, the roll out of the 'Target 25' plan is nonetheless beginning to yield positive results.
The advance in group turnover during the second quarter marks a turning point, with growth expected to further ramp up through the second half of the year.
DEPLOYMENT OF 'TARGET 25'
During the first half of the year, Sidetrade formed a strategic sales and technology partnership with Euler Hermes, the world leader in credit insurance. The 'Euler Hermes Intelligence by Sidetrade' application is the first dedicated credit insurance policy management solution. This partnership initially covers the French and UK markets, and is expected to be a significant growth area in the future.
In parallel, Sidetrade continues to strengthen the teams in France and England. Sidetrade is also establishing a pan-European centre in Dublin with a dual objective: deliver services across Europe as well as to support the launch of additional branches in key European markets.
Olivier Novasque, CEO of Sidetrade Group, explains:
" With 'Target 25', Sidetrade is taking the offensive in France and abroad by positioning the Group to be the world leader in its market. Our value proposition, centred on credit risk management and accelerated cash flow generation for businesses, together with the achievements of the SaaS business model, form key pillars for the success of this strategy."
Sidetrade management maintain their confidence in the Group's ability to post overall growth for the 2013 period.
