GetBusy says subscription model 'incredibly resilient' to crisis

Document management and productivity software company GetBusy updated the market on the effects of the ongoing Covid-19 coronavirus pandemic on Wednesday, reporting that its subscription model was proving “incredibly resilient” to the circumstances.

The AIM-traded firm said that none of our team had been diagnosed with Covid-19 thus far, adding that the health and wellbeing of its people was “paramount”.

It said it transitioned to working from home from mid-March, reporting that its team had “adapted impressively”, with the fact that nearly all of its business tools were cloud-based helping the process to run smoothly.

“We are fortunate that our subscription business model is inherently resilient to the challenges that many businesses are currently facing,” the board said in its statement.

“Whilst we naturally expect disruption to the appetite of some prospective customers to adopt new technology at this time, we regard the current international lockdown as a catalyst that potentially accelerates the trends of remote and digital working that are helpful to our business in the medium and long term.”

GetBusy also announced the receipt of a $0.52m loan under the US Small Business Administration's Paycheck Protection Program (PPP) by its US trading subsidiary, GetBusy USA Corporation.

It described the PPP as a component of the US federal stimulus package known as the Coronavirus Aid, Relief and Economic Security Act (CARES), which offered help to small businesses in the US during the Covid-19 crisis.

Under PPP, the loan, or a proportion of it, could be forgivable if the use of the proceeds met certain criteria, including retaining US employees.

“We anticipate meeting these criteria and expect between 90% and 100% of the loan to be forgiven over the next eight weeks,” the board said.

“Any forgiven portion of the loan will be recorded in the Group's income statement as other income, which is excluded from adjusted profit - our principal measure of group financial performance.

“The loan forgiveness is not taxable.”

GetBusy said a more detailed update on trading would be provided ahead of its annual general meeting on 5 May.

At 0900 BST, shares in GetBusy were down 4.5% at 53p.