Trading update, CMD and notice of results

21 October 2020

D4t4 Solutions Plc

Trading update, Capital Markets Day and notice of half-year results

D4t4 Solutions Plc (AIM: D4t4, "the Group", "D4t4"), the AIM-listed data solutions provider, provides the following trading update for the six months to 30 September 2020.

Financial highlights*

·    Group revenue and adjusted profit** for the first half in line with management expectations

·    Half year revenue of £5.09m (H1 2019-20: £8.84m) with a number of significant new contracts expected to close in the half still pending, though expected to be awarded in H2, due largely to contracts in current negotiation taking slightly longer to close given the current environment

·   12 monthly recurring revenue, as a percentage of total revenue, increased to over 55% (March 2020: 45.2%)

·     Strong interim net cash position of £12.08m (FY 2019-20: £11.24m)

Operational highlights

·    Focus on data platform software and services continues to successfully deliver recurring revenues from all new H1 wins

·   New contract wins secured including a large South American retailer as well as the Group's first customer win in the US healthcare market

·   The Group's strategic partnerships have moved forward - D4t4 has continued to strengthen its relationships with Teradata, Pegasystems and SAS

o  Teradata, D4t4's business partner, launched the "Vantage Ignite program", a major product initiative into its global installed base enterprise accounts where D4t4's Celebrus Customer Data Platform (CDP) products are central to the initiative

·    Completion and delivery of version 9.2 of our Celebrus Customer Data platform software, which includes embedded machine learning capabilities and Natural Language Processing

·     Continued focus on enhancing the Group's enterprise software technology

Geographic and industry expansion

·    Continued investment in India, Europe and North America in product management, technical support and service delivery to support growing global presence

o  Investment in the business and training of staff is playing an important role in the delivery of D4t4's strategy both domestically and internationally

·    Ongoing focus on existing and new strategic partnerships continues to grow our increasing pipeline of opportunities across the business

Outlook

·      The board remains confident in delivering a solid finish to FY21, in line with management expectations

·      Prospects for H2 strongly underpinned by:

o  High level of annual recurring revenue from new licences signed during the second half of last year and support and maintenance revenues

o  Strong visibility on new contracts due to initiate during H2

o  Significant pipeline of new business in negotiation with existing clients wishing either to increase the footprint of the Celebrus CDP software or to extend the use of the Celebrus hybrid Customer Data Management (CDM) platform solution

Peter Kear, CEO of D4t4 Solutions, commented:

"We have secured some excellent new contract wins in the first six months of the current financial year. We signed notable deals for our Customer Data Platform software with a range of customers including a large South American retailer and our first US healthcare company alongside extensions with a number of existing clients. We have good visibility where new contracts are currently in final negotiation.

"Our global partnerships are allowing us to increase our addressable market. We have also made good progress with many of our strategic initiatives and our international offering continues to go from strength to strength.

"Overall, we are in a good position with a number of contracts in final negotiation and a strong pipeline with an increase in new opportunities. Based on our organic business, H2 annual recurring revenues and the depth and quality of contracts in final negotiation coupled with a strong new business pipeline, we remain confident about our prospects for the full year."

Capital Markets Day and notice of half-year results

D4t4 is hosting a virtual Capital Markets Day for analysts and investors today.  Peter Kear, CEO and Charles Irvine, CFO will be hosting the webcast and will be joined by members of D4t4's senior management team. The presentation will provide further detail on D4t4's Celebrus family of products (Customer Data Platform & Customer Data Management), which will include a demonstration of D4t4's proprietary CDP technology, as well as further insight into the Group's partnership model.  No new material information will be disclosed.

A recording of the presentation will be available following the event in the investor relations section of the D4t4 website.

D4t4 will publish its half year results for the six months to 30 September 2020 the week commencing 23 November 2020.

Note:

* The trading performance reported in this statement is based on unaudited management accounts

**Adjusted for amortisation of acquired intangibles, share based payment charges and foreign exchange gains

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

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