Asite grows revenues and profits

London-based software-as-a-service construction collaboration and e-procurement technology vendor Asite has published its financial results for the year to 30 June 2011. Revenue was up 44% to £2.914m from 2010 (£2.021m) and overall operating profit for the period more than tripled, up from 2010’s £0.133m to £0.422m.

Looking ahead, Asite says it is continuing to invest internationally, and also outside its core focus on the architecture, engineering and construction sector (within which it says there is “significant interest in its collaborative Building Information Model (cBIM) solutions”).

Analysis

In posting the news, Asite is stressing that 2011 was the company’s most successful financial year to date. There is no argument about this. Last year was the first time revenues rose above £2m and the first profitable one after nine years of losses, so the ensuing 12 months have seen the company continue the upward trend very positively, apparently due to a strategy focused on enterprise deals and international expansion (notably, in the US and Middle East markets). The revenue result puts it hot on the heels of Unit4 Collaboration, but still some distance behind BIW and 4Projects.

The result is also significant as it bucks a trend of recent flat results from rival UK vendors (including 4Projects and BIW), though it isn’t clear how much of Asite’s revenues are derived from its collaboration platform and how much from its e-procurement solutions (last year, CEO Tony Ryan told me the latter comprised about 20% of its revenues).

The continued growth in Asite profits also pushes the company just ahead of Unit4 Collaboration’s 2010 result.

(Note: I am conscious that I have been inconsistent in my previous reporting of vendors’ profits; in some cases, businesses such as Asite focus on operating profits, while for others I have discussed pre-tax or EBITDA).