Acuity RM reports recent strategic progress

10th Jul 2024 13:48

(Sharecast News) - Acuity RM Group updated the market on its strategic achievements and future outlook in an update on Wednesday, following the acquisition of Acuity Risk Management.

The AIM-traded company, which was holding its annual general meeting, said its focus remained on accelerating revenue growth, underscored by several milestones including significant contract wins and a 45% increase in order values from 31 March to 31 December 2023.

It said its growth had been driven by strategic recruitment and the enhancement of its management team throughout 2023 and the first half of 2024.

The changes were expected to yield substantial contributions by mid-2025.

Key achievements included a 50% increase in orders won in the first half of 2024, totaling £1.02m, compared to £0.68m in the first six months of 2023.

Orders in the second quarter of 2024 were up 81% to £0.69m, from £0.38m in the same period last year, with several large opportunities postponed to the second half, amounting to a potential value of £1.42m.

The sales pipeline remained robust at £7.9m as of 30 June, unchanged from the end of December.

Notable milestones included securing the first order from a US state in January, and establishing new partnerships in the UK and the US.

The company also appointed a finance director in the fourth quarter of 2023, a chief technical officer in the third quarter of 2023, and experienced sales and marketing executives in the second quarter of 2024.

In April, Acuity launched a new counter-terrorism product, STORM, at an event held in the Houses of Parliament.

STORM, which the company said was the first product of its kind, was designed to help event organisers comply with upcoming legislation on counter-terrorism measures.

The board said it remained confident in the company's strategic direction and its potential for continued growth and success.

"We expect to be able to announce an accelerating rate of order wins and developments in all areas of the business over the next 12 months," said executive chairman Angus Forrest.

"In particular we are redeveloping our core product, STREAM, so it incorporates the latest technologies, remains at the forefront of risk management software platforms available in the GRC market and has a suite of improvements built in to maintain its competitive edge."

Forrest also noted that £1m was raised in June to invest in the company's developments.

"This should enable faster growth and increased value of orders which in turn should be reflected in improving financial results."

At 1044 BST, shares in Acuity RM Group were down 5.54% at 3.21p.

Reporting by Josh White for Sharecast.com.