According to the latest annual report (see Stock Exchange notice) from Coda plc, its subsidiary UK collaboration vendor Business Collaborator continued to grow in the year ending 31 December 2006:
“We are delighted that the strong performance in 2005 has continued again in 2006. The membership of the SEDEX program (Supplier Ethical Data Exchange) has continued to grow. This, together with significant new customers gained during the year has resulted in operating profits (before goodwill amortisation) of £0.5m (2005: £0.3m) and an operating profit of £0.1m (2005: £nil). Operating profit margins (before goodwill amortisation) reached 19.9% for the year. Operating profit margin 5.9% (2005: 0.1%)”
Business Collaborator turnover grew from £1.923m in 2005 to £2.350m last year (up 22 per cent). Operating profit in 2006 was £139,000, up from £4,000 in 2005. BC’s deferred income (presumably fees in respect of licences yet to be invoiced) at the year-end was £0.4m.
To put this into some kind of context, UK market leader (and my employer) BIW Technologies turned over £4.66m in the year to 30 September 2006, has been trading profitably since May 2006, and made a profit of £170,000 in the last three months of 2006 alone – see BIW news release. While BC appears to account for most of its licence fees up-front, software-as-a-service provider BIW only accounts for fees actually invoiced during the year and its deferred income is now over £8m.
Related post: BIW’s growth continues – but what about the others? (08 November 2006)