REG - Aukett Swanke Group - Smart Buildings software contract win

Aukett SwankeAnnouncement

04/06/2024 12:45

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RNS Number : 0767R  Aukett Swanke Group PLC  04 June 2024

4 June 2024

 

Aukett Swanke Group Plc

("Aukett Swanke", the "Company", or, together with its subsidiaries, the
"Group")

Smart Buildings software contract win

Trading update

 

Aukett Swanke (AIM: AUK), the Architecture and Smart Buildings group, provides
the following update.

Smart Buildings contract win

On 21 March 2023, the Company announced the acquisition of certain assets of
RTS Technology Solutions Ltd ("Vanti") by a subsidiary of the Company, which
included rights over certain software products. The Vanti transaction has
significantly boosted the Group's Smart Buildings credentials and has already
resulted in a number of new contracts for the Group amounting to approximately
£2m over the next 18 months.

The Group has now signed one such contract which includes revenue of £200,000
for a licence of the Enterprise Edition of Smart Core, the building operating
system developed by Vanti. The relevant customer is a long-standing client of
the Group's architectural businesses, and the pre-existing relationship was
important in securing the contract. The building in question is in the City of
London and will be the largest building to deploy Smart Core to date. This
represents the Group's first meaningful revenue from software that has no
third-party costs. While an up-front purchase, rather than SaaS revenue, the
Group will receive recurring revenue from a long-term support contract once
the building is brought into use.

Trading update

On 26 April 2024, the Group's AGM Statement noted that the first half results
to 31 March 2024 would be an increased loss on increased revenue, but with the
expectation that the majority of this loss would be recovered during the
second half. Since that announcement, the Group has seen further delays to
start dates for some confirmed contracts. Additionally, some large prospects
the Group expected to secure and start in the second half have yet to be
secured. Consequently, the Board are more cautious in the outcome for the
current financial year, which ends on 30 September 2024.

The success with Vanti and the continuing delays in the Group's traditional
businesses, which rely on a succession of new projects starting when planned
to cover the associated large fixed cost base, demonstrates to the Board the
need to increase the pace at which it implements its Smart Buildings strategy.

Nick Clark, Chief Executive, commented:

"Like other shareholders, I am disappointed that the performance of several of
the Group's businesses has been below the board's expectations. We will not
avoid difficult decisions to ensure the existing businesses are positioned for
profitability as the newer revenue streams start to come through.

By contrast, we are delighted to have secured a software licence sale to
deliver the building operating system for a substantial property in the City
of London. While minor in relation to Group revenues, significantly it
demonstrates the ability to leverage the contacts and experience of our
architectural colleagues to deliver smart building revenues that can scale
independently of overheads. This offers the promise of a brighter future for
the Group - using our expertise and contacts to generate high margin scalable
revenues."

 

Contacts

Aukett Swanke Group
Plc
+44 (0) 20 7843 3000

Clive Carver,
Chairman

Nick Clark, Chief
Executive
 

Strand Hanson Limited, Financial and Nominated Adviser
                          +44 (0) 20 7409 3494

Richard Johnson, James
Bellman

Zeus Capital Limited,
Broker
+44 (0) 20 3829 5000

Simon Johnson, Louisa Waddell

Investor/Media
+ 44 (0) 7979 604 687

Chris Steele

 

About Aukett Swanke Group plc

Aukett Swanke Group has a strong foundation in architectural services and is
on a transformative journey to become a London-listed provider of Smart
Buildings and related services. ASG are uniquely positioned to ensure the
technical systems that run modern premises are designed as an integral part of
the structure, from the outset.

For more information go to https://www.aukettswankeplc.com
(https://www.aukettswankeplc.com)

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

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