Asite profit jumps 31%

SaaS collaboration vendor Asite grew its 2016 revenues 14% to just over £6m.

London, UK-based SaaS construction collaboration technology vendor Asite has this week filed its annual report and accounts for the year ending 30 June 2016 with Companies House. The report shows revenues up 14.3% to £6.047m (2015: £5.289m) – at today’s rates, that’s around $US7.47m or €6.93m. Operating profit for the period increased by an impressive 31.1% to £0.993m (2015: £0.757m).

As in 2015, the revenue growth lag a little behind those of competitors. For the same period, global market leader Aconex last year announced underlying organic revenues up 31% (and inclusion of figures from its March 2016 Conject acquisition ramped this to 50%). In October 2016, Viewpoint for Projects reported its 2015 EMEA revenues were up 48% with 2016 “double digit” revenue growth “very encouraging”.

Asite chief executive Tony Ryan writes in the report:

“When taking into consideration the cost of opening up new operations, I am particularly buoyed by the operating profit result of the business. This gives the Group great scope for growth to the top line going forward. Our cost base is now so well structured that almost all of our investment will be focused on Sales & Marketing and M&A activity.

“We continue to expand into new markets while expanding our product and service base in line with our growing number of clients and the requirements they bring. We have continued to invest in new offices, namely in Africa and the Middle East, to boost our global footprint and revenues.”

International performance

Nonetheless, Asite remains heavily reliant upon the intensely competitive UK market which still accounts for 78% of its revenues. Revenues from Asite’s second biggest sector, Australasia, continued to slide (down from £519k to £439k – “After the reporting date, Asite Limited incorporated a new subsidary [sic], Asite Australia”), but North American revenues continued to grow, from £377k to £424k. Europe, at £242k, is Asite’s next largest market.

A year ago, Ryan blamed a slowdown in Australia’s natural resources market but said “we have a decent pipeline out there, particularly in civils and infrastructure, which we expect to grow.” This plainly didn’t happen, but his confidence regarding the US market appears to be borne out.

Asite staff numbers continue to grow, with the India-based technical team accounting for the largest number – up 40 from 155 to 195. Total Asite headcount grew from 181 to 227, with six additional professional services and sales and marketing staff making up the balance.