AIM newcomer GetBusy (AIM: GETB) has joined the market in a slightly unusual deal. The company has been a subsidiary of Reckon, an Australian-listed technology company. The business has been de-merged and the stock distributed to Reckon shareholders with trading starting here on AIM this week. According to GetBusy CEO Daniel Rabie, Reckon had been through a cycle of investment, is at a more mature stage of its development, and wants to focus on generating dividends. Whereas GetBusy is ‘more of a start-up’ which needs investment.
Some of that investment will be provided by a £3 million rights issue that was completed prior to the listing. GetBusy has 60 per cent of its revenues in the UK, is based in Cambridge, and when the current uncertain political climate over here is also taken into consideration, it’s understandable why London rather than Sydney would be the more natural home for the shares. Though it might take a while for the share register to sort itself out if there’s flowback of stock from Australian investors.
GetBusy has two document management software products, Virtual Cabinet which is sold to larger corporates, and SmartVault which is cloud-based and targeted at SME customers. It is also in the process of developing ‘SCIM’, which is intended as an upgrade on the existing products and will offer a user-friendly, self-service interface. Prolific document generators are the obvious customers with accounting firms being by far the largest constituency. As well as the UK, there are also US and antipodean customer bases.
Revenues have been growing with sales up from £5 million to £8 million last year. Pre-tax profit was held down to £0.2 million by development spend which will be at least £2.5 million going forward. Broker Stockdale sees revenues topping £10 million in 2018, pre-tax profits of £1.5 million and earnings of 2.3p. With the shares at 39p that’s a p/e of 17 and an EV/EBITDA multiple of around 10.