Smartspace Software FY adjusted underlying losses expected to have widened

IT service management company Smartspace Software said on Friday that adjusted underlying losses were expected to have widened in the twelve months ending 31 January 2022.

Smartspace said, based on current trading, it had opted to lower growth assumptions for the current and subsequent financial year, with annual revenues now expected to be no less than £5.2m, up from £4.6m in the prior trading year, while adjusted underlying losses were seen widening to £2.7m from £2.1m.

Annual recurring revenues were up 53% year-on-year to £3.78m on 31 July, with Smartspace stating that momentum had continued into the second half as ARR hit £4.11m at the end of September

The AIM-listed firm also noted that it had experienced "continued global uncertainty", with various geographic markets in which it operates all being affected at different times, leading to lower growth than anticipated.

Smartspace said it remained convinced by the medium-term growth opportunity for its Naso offering and expects once business environments return to normal, that stronger growth rates will resume.

Chief executive Frank Beechinor said: "Our market continues to be a very attractive sector, even more so when you consider the recent acquisitions of our major competitors at high ARR multiples.

"Our priorities remain in continuing to deliver growth in ARR and to maximise value for shareholders over the coming years."

As of 1105 BST, Smartspace shares were down 23.82% at 72.75p.