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(Sharecast News) - AdvancedAdvT said on Wednesday that its full-year results for the year ending 28 February were set to be ahead of market expectations, driven by continued operational improvements and high levels of recurring revenue.
The AIM-traded software group said it expected to report revenue of 53m, compared with 43.3m in the prior year and ahead of market consensus of around 52.5m.
Adjusted EBITDA was forecast to be no less than 14.4m, up from 11.3m last year and above consensus of approximately 13.7m.
It said its adjusted EBITDA margins were expected to exceed 27%, compared with 26% in the prior year and around 21% in the group's first reporting period, reflecting ongoing efficiency gains across the portfolio.
Recurring revenue accounted for about 80% of total revenues, supported by strong customer retention across both divisions.
The firm said its systems remained embedded in regulated, mission-critical workflows across the public and private sectors.
Cash as at 28 February was expected to be broadly in line with market expectations at around 96m, with investments of approximately 15m during the year.
"I am pleased to report another year of delivery ahead of expectations," said executive chair Vin Murria.
She added that while artificial intelligence presents both opportunities and risks across the software sector, "in our markets it acts as an amplifier of our platform value rather than a disruptive threat; enhancing productivity for our customers, expanding our addressable market, and increasing the importance of trusted, compliant software."
At 1203 GMT, shares in AdvancedAdvT were up 4.87% at 157.3p.
Reporting by Josh White for Sharecast.com.
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