I-Nexus' revenue increase fails to prevent widening losses

In its maiden annual results as a listed company, software group I-Nexus Global said it grew revenues but that losses widened due to the cost of new hires and a new US office.

For the year ended 30 September the cloud-based strategic execution software specialist reported a loss before tax of £1m, an increase of 126% compared to the year before, despite revenue increasing by 15% to £4.7m. Recurring revenue made up 82% of total revenue, unchanged from a year earlier.

Administrative fees increased by 28% to £4.1m following 26 “key hires”, the opening of the company’s first international office in New York and its float on the AIM index in June.

Simon Crowther, chief executive of I-Nexus, said: "With the support of our expanding investor base, I-Nexus now has the funding to accelerate growth and take it into the next stage of its development, building on our market leading position in the emerging market for enterprise grade Hoshin-based strategy execution software."

I-Nexus’ initial public offering raised the company £10m before expenses, leading it to hold cash and cash equivalents of £6.9m at 30 September, up from £0.2m at the same point last year.

Despite some higher than expected churn at the beginning of the current financial year, the company said it was seeing the benefit of targeted investment through steady pipeline growth, in line with management expectations for the year.

"In taking our first steps as a public company, we have identified a clear path to enhance the size, scale and relevance of our business. The investment in growing our high calibre team and suite of products has laid the foundation for continued growth, which gives us grounds for optimism," said Crowther.

I-Nexus’ shares were up 2.86% at 54.00p at 0837 GMT.