4 June 2024
Aukett Swanke Group
Plc
("Aukett Swanke",
the "Company", or, together with its subsidiaries, the
"Group")
Smart Buildings software contract
win
Trading update
Aukett Swanke (AIM: AUK), the Architecture and
Smart Buildings group, provides the following update.
Smart
Buildings contract win
On 21 March 2023, the Company announced the
acquisition of certain assets of RTS Technology Solutions Ltd
("Vanti") by a subsidiary of the Company, which included rights
over certain software products. The Vanti transaction has
significantly boosted the Group's Smart Buildings credentials and
has already resulted in a number of new contracts for the Group
amounting to approximately £2m over the next 18 months.
The Group has now signed one such contract
which includes revenue of £200,000 for a licence of the Enterprise
Edition of Smart Core, the building operating system developed by
Vanti. The relevant customer is a long-standing client of the
Group's architectural businesses, and the pre-existing relationship
was important in securing the contract. The building in question is
in the City of London and will be the largest building to deploy
Smart Core to date. This represents the Group's first meaningful
revenue from software that has no third-party costs. While an
up-front purchase, rather than SaaS revenue, the Group will receive
recurring revenue from a long-term support contract once the
building is brought into use.
Trading
update
On 26 April 2024, the Group's AGM Statement
noted that the first half results to 31 March 2024 would be an
increased loss on increased revenue, but with the expectation that
the majority of this loss would be recovered during the second
half. Since that announcement, the Group has seen further delays to
start dates for some confirmed contracts. Additionally, some large
prospects the Group expected to secure and start in the second half
have yet to be secured. Consequently, the Board are more cautious
in the outcome for the current financial year, which ends on 30
September 2024.
The success with Vanti and the continuing
delays in the Group's traditional businesses, which rely on a
succession of new projects starting when planned to cover the
associated large fixed cost base, demonstrates to the Board the
need to increase the pace at which it implements its Smart
Buildings strategy.
Nick Clark,
Chief Executive, commented:
"Like other
shareholders, I am disappointed that the performance of several of
the Group's businesses has been below the board's expectations. We
will not avoid difficult decisions to ensure the existing
businesses are positioned for profitability as the newer revenue
streams start to come through.
By contrast,
we are delighted to have secured a software licence sale to deliver
the building operating system for a substantial property in the
City of London. While minor in relation to Group revenues,
significantly it demonstrates the ability to leverage the contacts
and experience of our architectural colleagues to deliver smart
building revenues that can scale independently of overheads. This
offers the promise of a brighter future for the Group - using our
expertise and contacts to generate high margin scalable
revenues."
Contacts
Aukett Swanke Group
Plc
+44 (0) 20 7843 3000
Clive Carver,
Chairman
Nick Clark, Chief
Executive
Strand Hanson Limited, Financial and Nominated Adviser
+44 (0) 20 7409 3494
Richard Johnson, James
Bellman
Zeus Capital Limited,
Broker
+44 (0) 20 3829 5000
Simon Johnson, Louisa
Waddell
Investor/Media
+ 44 (0) 7979 604 687
Chris Steele
About Aukett
Swanke Group plc
Aukett Swanke Group has a strong
foundation in architectural services and is on a transformative
journey to become a London-listed provider of Smart Buildings and
related services. ASG are uniquely positioned to ensure the
technical systems that run modern premises are designed as an
integral part of the structure, from the outset.
For more information go to
https://www.aukettswankeplc.com
The information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.
