NEWS

MSL Solutions continues to expand global footprint, deliver on its growth strategy and reaffirms guidance for FY18

31 October, 2017

ASX Release

Highlights

  • On-track to deliver FY18 targets;
    • 20% of annual target revenue in Q1 in line with expectations
    • 15% increase in prior corresponding period recurring revenue, on a pro forma basis
    • 47% of FY18 revenue target already contracted
  • Strong, growing pipeline of qualified opportunities;
  • Strong balance sheet with $8.7 million cash and no debt;
  • Normalised operating cash flow of $1.1 million for the quarter (excluding one-off items);
  • More than 2,000 customers across 20+ countries and growing;
  • The successful merging of Zuuse with Progressclaim is expected to enhance the valueof MSL’s carried investment in this entity.

31 October 2017: MSL Solutions Limited (ASX: MPW) (MSL or the Company) has today lodged its
Appendix 4C Report and is pleased to provide a review of the Company’s progress for the quarter
ended 30 September 2017.

Financial Performance

MSL Solutions continues to successfully deploy its world-leading, proprietary open architecture SaaS software and data platform to the sports, entertainment and leisure industries and strengthen its market leading reputation.

The company is on track to meet guidance, reporting 20% of its projected annual revenue for the first quarter, which is in line with expectations. During the quarter, over 50% of operating revenue was recurring annuity revenue, and represented a 15% uplift from the same corresponding quarter last year, on a pro-forma basis.

Commenting on the Company’s progress, Craig Kinross, CEO of MSL Solutions said: “The key performance metrics of the business are in line with seasonal expectations and on track to deliver a
positive result, as we strengthen our competitive positioning.”

“As in previous years, we see the sales pipeline once again weighted more strongly to the second half. Given the strength of our business and our balance sheet, our strategy has proven to be the right one, at the right time, as we strategically manage our growth ambitions, consolidate a highly fragmented market and seek operational synergies and complementary businesses.”

“The key sales divisions have made solid progress to grow our global footprint and deepen existing customer relationships by gaining a greater share-of-wallet and increasing the number of orders closed with new and existing clients. We will continue to stay focused and invest in our core capabilities to help our clients and their communities, thrive.”

“It’s great to see strong, quality and consistent earnings growth, with our 2,000+ customer base across 20 countries continuing to expand. Through a combination of innovation and acquisitions we continue to grow our pipeline and partnerships, as more member organisations realise the value of empowered, engaged and rewarded communities and embrace our proprietary products.”

Operations and Key Sales Segments

The Company continues to accelerate revenue generation across all key streams including: annuity fees, software licensing, database media revenue and booking and transaction fees, enjoying a high level of recurring revenue.

MSL continues to expand its global footprint by achieving strong organic growth within each sales segment, gaining its first US customer and first European stadium outside the United Kingdom and selling the Australian product into the European customer base acquired via Verteda, as reported in the previous update. A number of strategic agreements have been announced since listing in May 2017 including:

  • Manchester City FC Etihad Stadium, new Tunnel Club;
  • Community First Credit Union (CFCU) integration of club loyalty to bank debit cards;
  • Maxgaming, a Tatts Group company, endorsement of MPower BI platform;
  • Chronogolf partnership established to sell MSL Solutions’ products into the US market;
  • PGA Europe’s endorsement of MPower Tournament & ProPlanner products;
  • Sale to first high-profile Spanish stadium, the first European stadium outside of UK;
  • Village Roadshow upgrade for inaugural TopGolf site in Australia; and
  • Entry into the UK golf market, being the first club sale to a leading England golf resort.

The portfolio of products has performed well for the period. The data analytics business MPower BI is gaining traction, with Golf Australia committing to roll out the base product to its 1,600 clubs in Australia.

The business currently carries no debt and has approximately $8.7 million cash in the bank.

Outlook

The management team is pleased with the steady growth experienced since MPW listed on the ASX in May 2017. The Company continues to show positive momentum, reinforcing its strong competitive position to take advantage of the huge market opportunity that exists.

The Company continues to focus on enhancing shareholder value with a focus on strict disciplines being maintained around capital expenditure and ongoing initiatives to grow market share. In addition to growth by acquisition and diversity of global footprint, the Company also expects to continue to generate organic growth from building deeper strategic partnerships with customers by providing additional solutions and services to meet their evolving enterprise requirements and positioning MSL Solutions as the partner of choice.

The Company is pleased to reconfirm its FY18 forecast guidance as follows:

Revenue          $ 35.5 million
EBITDA           $ 6.5 million
NPATA             $ 5.9 million

For full ASX release click here to download.

Ends

For further information, please contact:

Georgie Morell
Investor and Media enquiries
MSL Solutions Limited
Phone: +61 438 008 383
Website: mpowermsl.com/contact/