Sirma Group Holding missed FY2016 guidance but outperformed ELANA Trading analysts’ expectation. Growth accelerated in H2’16 allowing the Group to sustain sales performance above 20% y/y. Тop line expanded 22% y/y to BGN 41.5m as US sales advanced well together with strong domestic performance. Q3’16 was best in history followed by a strong Q4. Bottom line outperformed expectations but missed guidance on higher depreciation.
Top performers in 2016 – software development and system integration
Sirma Group Holding key software developing and integration arm – Sirma Solutions, was a top performer contributing most to both top and bottom line improvement. Semantic arm – Ontotext, stabilized performance while financial, data storage and measurement solutions also delivered satisfactory results. Software development in cyber security and cross industry solutions as well as system integration top performing verticals.
Heavy R&D in cloud and cognitive solutions
Amid sales expansion with a new sales office in the US, Sirma Group Holding continued heavy R&D in cloud and cognitive tech solutions. The Company already beta tests a new video image recognition product in the US as announced at the IPO. It also upgraded its data storage capabilities to faster Flash storage thus arming itself for the cloud opportunities on the market. The latter two expected to be cornerstone in future tech solution focus of the company building on its semantic data mining and software development expertise.
Significant streamlining ahead
Sirma plans a major Group streamlining to boost synergies and offer more multi-industry solutions. Cloud, data and cognitive tech solutions to be in the heart of the Group’s enterprise solutions. Multi-industry solutions are already 1/3 of sales.
At a regular online meeting with investors the company presented a forecast for five years key financial indicators with top line expected to surge 6x by 2022 to EUR 120m, aka 33% CAGR, and EBITDA to expand 4x to EUR 25m.