RPMGlobal Holdings Limited (RUL) is engaged in the provision of advisory consulting, training and software for the mining and related services industries on a global basis. RUL has three divisions namely Software, Advisory and GeoGAS.
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RPMGlobal Holdings Limited (ASX: RUL) was listed on the Australian Securities Exchange on 27 May 2008 and is a global leader in the provision and development of mining software solutions, advisory services and professional development to the mining industry.
The company’s current software subscription TCV is $27.8m an increase of $4.4m from the $23.4m reported by RPM on 16 March 2021. Further, RPM’s current Annual Recurring Revenue (ARR) from software subscriptions is AUD$19.4m per annum an increase of $1.0m from the $18.4m reported on 16 March 2021. The business has also closed $0.3m in perpetual software licenses since 16 March 2021.
…………….. Revenue ………………………………. …………… Operating Margin …………………. ………………… Net Profit after Abnormals ……
OUTLOOK
• The first seven weeks of H2 2021 have started well in terms of software license sales and as such management expects the utilisation of its software consulting team to rise quickly.
• The business continues to build a strong deal pipeline but is experiencing delays in signing software contracts due to drawn out procurement, legal and approval processes. We still firmly believe these deals will be concluded in the fullness of time.
• COVID-19 has introduced some logistical challenges for our Advisory team due to the curtailment of international travel. Given these challenges we were pleased with the division’s $0.8m contribution in the first half and expect another positive result in the second half.
• Our AMT product, coupled with the newly acquired IMAFS inventory optimiser, both have strong second half sales pipelines and we hope to conclude several important deals in H2 2021.
• The Company is confident that the continued heavy investment in its software products and their transition to the cloud will set the business up for strong market share growth in the medium term.
(and … Net Operating costs have dropped in the areas of consulting salaries, travel, accommodation and conferences )
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