19 April 2021

D4t4 Solutions Plc

Trading update

D4t4 Solutions Plc (AIM: D4T4, "the Group", "D4t4"), the AIM-listed data solutions provider, announces the following trading update for the year ended 31 March 2021.

Following a strong second half to the financial year, Group revenue and adjusted profit before tax* are expected to be approximately £22.8 million and £4.2 million respectively, both ahead of the Board's prior expectations, comfortably so at the adjusted pre-tax profit level. This is a very pleasing result and bears out the confidence we placed in the strength of the pipeline of business opportunities carried into the second half of the year.

As we move into FY22 the Group now benefits from record levels of recurring revenue with year-end annual recurring revenue (ARR**) up by 11% year on year to £10.6 million (2020: £9.6 million).  This is now a key metric for the Board which we believe is set to continue an upward trend as we move towards a predominantly term/annual recurring revenue model, providing more revenue visibility and ultimately better-quality earnings.

Cash generation during the second half of the year was strong and has resulted in an increase in the year-end cash position to approximately £14.2 million (2020: £12.8 million). The Group had no debt at the year end. The Group has not participated in any government COVID-19 business support schemes and has continued to pay PAYE, VAT and Corporation Tax on relevant due dates.

Other significant operational highlights in the year were:

·   Ongoing investment to enhance the Celebrus Customer Data Platform (CDP) offering;

·   Final development of a new family of fraud products that we have been working on over the last two years, due to launch in June 2021;

·   Further development of the Group's strategic technology and service partner relationships, which are proving key in terms of scaling the market reach of our Celebrus software;

·   Continuing geographic expansion with the opening of an APAC office in Sydney, Australia and with further growth at our operations in Cary, USA and Chennai, India.

The Board remains highly confident in the Group's strategy; our underlying business is delivering against our key KPIs and performing well, and D4t4 is well-positioned in its key markets. The current revenue visibility, order book and pipeline of opportunities all bode well for the future.

Final results for the year to 31 March 2021 are expected to be announced on the 29 June 2021.

* Adjusted profit before tax is calculated before amortisation of intangibles, one-off reorganisation costs, foreign exchange gains/(losses) and share based payment charges.

** ARR (Annual Recurring Revenue) is the amount of revenue at a point in time that is expected to recur within the next twelve months.

Peter Kear, Chief Executive of D4t4, commented:

"The D4t4 global team has performed incredibly well during a most unusual year. Our strategy continues to deliver and is reflected in our strong overall growth and the improving visibility in the increasing level of ARR.  We continue to innovate our product, grow geographically and deepen our relationships with our strategic partners. We are also working to develop new partner relationships in different verticals.  

"The business enters the new financial year in robust shape after closing a number of significant contracts in the second half of the year; we are highly confident in the outlook for FY22 and beyond."

www.d4t4solutions.com

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About D4t4 Solutions plc

D4t4 Solutions plc (www.d4t4solutions.com) provides data solutions through its Celebrus suite of products and services, which is comprised of two distinct complementary offerings - its proprietary Customer Data Platform (CDP) and Customer Data Management (CDM) solution. The Celebrus family of products offer data capture, data migration, data synchronization, data management and data monitoring.

Celebrus CDP is an enterprise software product which captures customer behaviour in real time across digital channels to enable a range of applications including customer analytics, personalised marketing, risk, fraud detection and compliance.

Celebrus CDM is an integrated platform that automates the ingestion, integration, transformation, and delivery of customer data from streaming, persisted or historical sources, whether as an appliance on-premises or in the cloud, to deliver real-time, unified, and trusted multidimensional views of customer data for personalisation, risk, fraud, analytics, and recommendation applications.

The Group has offices in the UK, USA, India and Australia with employees across the UK, US, Europe, India and Australia.  D4t4's blue chip global customers are largely within the financial services, retail and consumer sectors.

Celebrus is fully compliant with all major data privacy regulations and the Group is accredited to ISO27001: Information Security Management.