Today, the credit management software specialist Sidetrade released its financial results for H1 2015.

The Sidetrade Group has recorded a consolidated revenue of €7.9m in this period, showing 13% organic growth compared with H1 2014.

Aside from this, in H1 2015 the company also achieved a new milestone with €4m revenue in a single quarter. In Q2 2015 the Group confirmed a pick-up in growth (+14%).

The company has shown double-figure growth across key areas such as revenue, profitability and its cloud offering. In light of significant investment made by Sidetrade over this last year, the company is extremely pleased with the results.

 Notable growth includes:

• 13% increase in first-half revenue
• 30% rise in volumes of cloud payments processed
• 10% increase in profitability against a backdrop of high investment

SUCCESS OF THE CLOUD: 30% increase IN volumes PROCESSED

The Sidetrade Network is seeing increasing success as can be seen from the sharply higher volumes. Over 22 million invoices were processed in the Sidetrade Cloud in H1 2015 (versus 17 million in H1 2014), an increase of 30%.

Major sales successes during the period include XPO Logistics (formerly Norbert Dentressangle Logistics), which implemented Sidetrade’s software across nine European countries following successful launches in the UK and Ireland last year, Transgourmet, QMH UK, Vocalcom, Riwal France, BergeratMonnoyeur Belgium and Nutrisens

Strong profitability against a background of high investment: 10%

The operating profit margin of 10%, down from H1 2014 (-38%), reflects the investments set out in the Target25 strategy (an ambitious plan to attain 25% growth. In terms of technological innovation, Sidetrade stepped up its R&D in the spheres of Business Intelligence and Big Data. The emergence of these new technologies made it possible to bring new expertise into the R&D teams (five additional employees). In addition, the Sales and Marketing teams also expanded (10 new employees), thereby enhancing production capabilities for 2016. At 30 June 2015, the Group had 160 employees.

Accordingly, the Sidetrade Group operating profit totalled €0.8m over the half, a year-on-year reduction of €0.4m. This operating profit includes a Research Tax Credit of €0.40m (unchanged on H1 2014) as well as a very low level of capitalised R&D expenses totalling €0.10m (unchanged on H1 2014).

Corporation tax is estimated at €0.05m at 30 June 2015 versus €0.3m at 30 June 2014. Overall, the Group generated a net profit of €0.7m compared with €1m at 30 June 2014.

A SOLID balance sheet

As of 30 June 2015, the Group’s balance sheet remained strong with a net cash position of €6.2m versus €8.1m as of 30 June 2014. For reference, the lower net cash position was due to a €3m share buyback in H2 2014.

Furthermore, the Group remains debt free.

Sidetrade has the resources to fully fund its plans under the Target25 strategy. The company plans to continue its investment programme and remains on the outlook for possible acquisitions.

outlook FOR 2015

Sidetrade will continue its investment programme in order to develop the best possible innovations in the customer financial relationship space. Commercially, the Group continues to pursue its international goals with the recent opening of a subsidiary in the Netherlands.

Olivier Novasque, Chairman of Sidetrade Group, said:

“In line with our Target25 plan, the priority is development. On the innovation front, Sidetrade is investing heavily in a Big Data infrastructure in order to be able to process millions of items of data and to build predictive analysis algorithms. From order booking to collection, finance departments have an immense amount of data to analyse. Leveraging this data will make it possible to anticipate financial risks, identify trends and make recommendations to drive revenues. By making these major technological strides, Sidetrade hopes to fundamentally change the way companies interact for the better.”

Management has confirmed that 2015 will prove to be a year of further growth.

2015 First-Half consolidated RESULTS

Sidetrade Group (in millions of euros)	H1 2015	H1 2014	Change (%)
Revenue	7.9	6.9	+13%
Operating profit	0.8	1.2	-38%
Net profit	0.7	1.0	-28%
Operating profit margin	10%	18%	–

Consolidated and unaudited Sidetrade Group 2015 first-half results.

CONTACT SIDETRADE

Christelle Dhrif  –  T: +33 (0)1 46 84 14 13  –  [email protected][email protected]

In case of discrepancy between the French and English versions of this press release, only the French version should be deemed valid.

ABOUT SIDETRADE (www.sidetrade.co.uk)

A listed software provider (Euronext, FR0010202606, ALBFR.PA), Sidetrade offers companies the opportunity to digitise the management of their financial relationships with customers. Sidetrade’s market-leading solutions, complementary to ERP, meet the challenges of securing what is often a company’s largest asset, its accounts receivable, by reducing late payments and controlling customer risk. With sales in 65 countries, the Group enables 81,000 users from companies of all sizes and all sectors to collaborate via its Cloud solution and accelerate cash-flow generation.