Smartspace update doesn’t encourage

AIM-listed IT services provider Smartspace (LON:SMRT) saw its share price fall by 4.66% to 133p (as of 11:45 GMT) after reporting that revenues for the year ended 31st January were down by 10%. Recurring revenues for the period climbed by 39% and management said that this looked set to continue during the current year.

CEO Frank Beechinor commented: “Whilst it has been a difficult year for many, we are pleased with how we have weathered the turbulent conditions. The third lockdown in the UK has had a short-term impact on our progress, but we are encouraged by the increase in sales pipeline activity since the Government’s announcement on the roadmap out of lockdown. There are frequent articles in the media on Covid-safe workplaces, hybrid working and returning to the office and this is reflected in our sales enquiries as we offer solutions to help our clients manage this transition.

“In FY22 our focus will be on maintaining the momentum on growth in ARR. The recent price increase along with SwipedOn Desks and enhanced features will be major catalysts for achieving our growth objectives. We are very encouraged by the feedback on Evoko Naso and are optimistic for the prospects as FY22 progresses and offices start to reopen around the world.

“We are also pleased to reinstate guidance back in the market. Investors can now clearly see the potential of SmartSpace, as we continue to push forward in delivering future significant growth across the Group“.