Actual Experience revenues halved as group switches focus

UK-based analytics firm Actual Experience saw revenues halve last year after a decision to concentrate sales via its four channel partners, a strategy the group expects to see revenues rebound in 2018.

Revenue dropped to £364,832 from £716,346 over the twelve months to 30 September 2017 as a consequence of the selling solely through its quartet of channel partners.

However, revenue derived from sales to the partners expanded to 68%, compared to the 60% posted a year earlier. Actual Experience was confident that it was ready to do business with its channel partners at the scale and speed required, expecting to reap the benefits of previous work with significantly larger deployments and accompanying revenue on the horizon for the current trading year.

On the whole, the analytics-as-a-service company saw losses balloon to £935,852 from £238,466, principally due to increased investment in research and development, operational support and sales and marketing, plus the associated administrative costs, which came in 20% higher than it had twelve months prior at £6.98m.

The trading year finished with cash and term deposits totalling £18.2m, thanks to the £17.5m fundraising during the year.

Chief executive Dave Page said: "In 2017, we have seen initial small-scale commercial deployments through our Channel Partners and, working with them, have implemented product and process improvements. This was no small challenge and has drawn heavily on the skills and experience of our employees.

"As a result, we believe we are now ready to do business with our Channel Partners at the scale and speed they require. We are confident that 2018 will bring the first fruits of the hard work of previous years, with significantly larger scale deployments and accompanying revenue," he added.

Losses per share expanded 16.5% to 17.72p.

As of 0840 GMT, shares had picked up 1.24% to 302.70p.