Sidetrade: Strong contribution of Cloud computing model, +23% SaaS revenues

Boulogne Billancourt, FRANCE

Pursuit of organic growth: + 4.8%

€ 000's (unaudited) 2012 2011 Change (%)
1st Quarter Turnover 3,466 3,300 + 5.0%
2nd Quarter Turnover 3,418 3,271 + 4.5%
Half Year Turnover 6,884 6,572 + 4.8%

Positive contribution of Cloud model: +23% revenue growth of SaaS

The first six months of the year saw a 30% increase in transaction volume. Invoices processed in the Sidetrade Cloud totaled 14.6 million over the period, underscoring the value of the SaaS model. Key subscription-based customers that went into production during the period were RANDSTAD (France), GEODIS WILSON (Germany, Netherlands, Finland, Norway and Sweden), SOURIAU and SUPRATECH.

Subscription-based revenues from the SaaS business were €3.73 million (2011 H1: €3.04 million), equating to double-digit growth of 22.6% during the first six months of the year. The Sidetrade Cloud business continues to be the primary source of growth for the Group.

Overall, the first six months of the year saw Group turnover increase 4.8% to €6.88 million. The product mix bias towards Cloud computing has resulted in stronger growth in this area, in contrast with services revenues (implementation, training, consultancy, business process outsourcing). The Group advised of this development in the announcement of 2012 first quarter turnover. The slowdown in growth is accounted for partly by an unfavorable year-on-year comparison (2011 H1: +19.6%), as well as services results of €3.15 million, a decrease of 10.7% (2011 H1: €3.53 million). These results reflect the effects of the general economic slowdown and the loss of a business process outsourcing contract which generated significant turnover but with low operating margin.

The SaaS order book1 stood at €15.2 million at 30th June 2012. Sidetrade continues to build momentum on future recurring revenues and visibility on medium term business. These committed revenues which will be realised through to 30th June 2016, are not included in the income statement or balance sheet.