SaaS construction collaboration technology provider Asite grew its revenues and profits in the year to 30 June 2018. With AEC acquisitions happening almost monthly, is the London-based vendor the next big target?
According to its just-published annual report (here), the London, UK-headquartered company saw revenues grow 12% from 2017 to £8,004,773 – around US$10.47m or €9.17m. During the same period, operating profit increased 85% to £1,357,702 – around US$1.78m or €1.56m – from 2017’s £733,370.
The revenue growth figure represents a slight slow-down on the 2016-17 year, which saw revenues climb 18%, while the operating profits showed a bounce-back after dipping in 2017 for the first time since the global financial crisis.
This latest report was published less than five months after Asite’s previous results announcement, when it highlighted its investment in new offices in Hong Kong and development of its New Dawn release of Adoddle, launched in March 2018. CEO Tony Ryan’s messages still focus on its growing global footprint and new releases of its Adoodle platform (the latest wheeze has been an instant messaging tool, aMessage); he describes the company’s common data environment as providing “Common Data Everywhere” (another variant on CDE – Bentley Systems has, for example, been talking about its “Connected Data Environment” for some years; post).
Within its “global footprint”, the mature UK market still contributes the largest proportion of Asite’s revenues: 76.9% – up slightly on 2017’s figure; revenues grew by 12%. Revenues were up in every other region apart from the Middle East, for which no figure was supplied (any revenues from that region were presumably rolled into results elsewhere – perhaps with India, where revenues jumped 60%). Elsewhere, revenues were up nearly 31% in Australasia, and 11% in Europe, while revenues grew by a comparatively sluggish 6.5% in north America – dropping it to third place in revenue terms behind the UK and Australasia.
Headcount dropped over the 12 months to June 2018, from 242 to 213 – the bulk of the reductions being born by Asite’s largely India-based technical team which shrank from 205 to 183 people. Excluding directors’ remuneration (some £614,000), the total wages and salaries bill was around £2.6m, meaning the average pay for an Asite employee is just over £12,000 – underlining the low cost-base provided by Asite’s Indian operation.
The next big deal?
Asite is in an interesting position compared to its competitors, particularly those from the UK. Following the acquisitions of BIW by Conject (then Aconex, then Oracle; post), and of 4Projects by Viewpoint (then Trimble; post), Asite is now – in revenue terms – the largest UK-based independent construction collaboration vendor. It must surely be being courted by potential acquirers (perhaps the rapid publication of its latest results and the trumpeting of its 85% profit growth is partly a marketing ploy to would-be suitors? See: the next big AEC SaaS acquisition?)
The UK market is also targeted by other US-based vendors – not just old hands like Autodesk (first Buzzsaw, now BIM 360 Docs) and Bentley (ProjectWise), but more recent arrivals such as Plangrid and Procore. The leading German players RIB and think project! might yet also enter the UK collaboration market – the latter acquired the UK’s CEMAR in May 2018 – while Belgium’s Bricsys 24/7 could be boosted following its recent acquisition by Hexagon (post).