Procurement News – recent results from tech firms

While Jason is looking hard this week at Ariba's results and what they mean, there's been a recent wave of financial announcements from some leading European technology firms in the  P2P and sourcing space recently, so here's a brief summary.

Trade Extensions, the Anglo-Swedish sourcing and optimisation experts, had a solid year in 2010. they're private, so don't release full data, but we understand they saw single-figure revenue growth, with more than 20% of revenue from new clients.  Their business is well balanced between licence sales and managed 'events'; and very equally split between Europe and North America. That's unusual for a firm of their size, as is the 'blue chip' nature of their client base (Cargill, Dow Chemicals, Coca-Cola).   Management were ' happy' with the profitability, and further investment in staff boosted sales and R&D effort in particular.

Hubwoo, the listed French "global leader in SAP-based procurement solutions" delivered on a SaaS (cloud) basis, announced their Q4 results also.  And very impressive, they were too, with sales up 22% year on year in the quarter, giving full year growth of 9% to €37.6M total revenue. While services are only a quarter of their business, they are growing faster (60% yr on yr) than SaaS revenues.  Profit wasn't disclosed, but "significant customer contracts in the quarter included Sigma-Aldrich, Barclay’s, Britvic, Shell, Campbell’s, Sara Lee, Monsanto and Telus".

Finally, Basware, the quoted Finnish e-invoicing and P2P released impressive full year 2010 numbers. Sales grew 11.3% to €103M; operating profit was up 14% to  €13.5M, and international operations were some 54% of total sales. Cash flow was also strong. They also announced some structural changes designed to support the rapidly growing 'automation services' part of the business, and support their aim to be "the leading e-invoice company worldwide". The company structure will become more regionalized; pricing models more flexible; and there will be greater focus on mergers and acquisitions.

So whether it is indicative of economies coming out of recession, or a demonstration of the huge potential that remains for solution providers in our area, these results suggest that times are improving and are pretty healthy now for the strong players in our market sector.

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