SmartSpace Software Plc (LSE:SMRT) is a small-cap UK-listed software company that develops software and hardware solutions for workspace (office) management.
The group is made up of three divisions: Space Connect, SwipedOn and Anders & Kern (A&K). Each of these tackles different aspects of smart workplace management from workers to visitors and analytics of the workspace.
The company itself has a long history dating back 20 years when it was first a telecom and IT infrastructure provider. Over the last 20 years, however, it’s pivoted from telco, IT and IT managed services to software around space management.
Its first foray into this space came in 2014, then more aggressively in 2016 and 2017. Only in 2018 was the company renamed to SmartSpace Software when it also acquired the SwipedOn business to push harder into what was clearly a fast evolving opportunity.
While the company is 20 years old, the way I view it is more of a new company as its efforts into workspace management software is really only about four years old. And considering two of its major business arms, SwipedOn and Space Connect, were acquired in 2018 and 2019 respectively, it’s really at the early stages of its growth story as I see it.
What exactly do each of these business divisions do? And why is it important when it comes to the future of work?
Space management software provider SmartSpace Software said two of its businesses had signed agreements with Australian workplace software provider XY Sense.
One of the businesses, Anders + Kern, had signing a distribution agreement to sell XY Sense's real-time computer vision sensor hardware and analytics platform.
The other business, Space Connect, would integrate its workplace software platform into XY Sense to enable an end-to-end solution for Covid-safe office utilisation monitoring and space booking.
AIM-listed workspace management software provider SmartSpace has reported on belated full year results to January 2020 and interim results to July 2020 this morning, stripping out its recently divested enterprise software division. Full year revenues jumped 71% (+36% organic) to £5.1m on strong hardware momentum and two software acquisitions, and supported by EBITDA losses of £1.7m. Meanwhile, more recently, revenue momentum slowed in the half year (+6.5% to £2.3m) due to a COVID-19 led slowdown primarily in the UK and US. However, on a call, CEO Frank Beechinor noted that trading going into the second half has been much stronger due to a rebound in sales momentum from SwipedOn, in addition to positive progress for Space Connect and its recently signed partnerships.
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Richard Jeans, Proactive's tech analyst discusses key UK tech stocks this week: SmartSpace (LON:SMRT)
Jeans explains why SmartSpace caught his attention, since its first half results the company has revealed a strong tailwind from COVID-19 as customers are purchasing the software to help them deliver their COVID-19 policies such as social distancing and sanitisation.
As we try to figure out the future of office working, SmartSpace should offer some helpful solutions for property managers. Its software manages desk occupancy, site visitors, and meeting room bookings.
Covid-19 functionality such as visitor contact information, room cleaning requests, and distanced desk positioning has been quickly added.
The company is now concentrated on its smaller and mid-market subscription SaaS offerings aimed at clients with up to 1,500 employees, having recently disposed of its enterprise software division. As well as raising a useful £5m cash to add to a £1.7m net balance, this disposal removes the distraction of a long sales-cycle business with lower margins.
Softcat has been signed up as a distributor which is an endorsement of the product and sales are already being made. There will be further benefit when the new generation of Evoko meeting room panels which incorporate the company’s software starts to ship... (continued)
SmartSpace Software has completed the sale of its enterprise software business to Four Winds Interactive UK for a cash consideration of £4.6m.
SmartSpace said it had entered into and completed a sale and purchase agreement, to sell the entire issued share capital of SmartSpace Global and certain contracts of its US subsidiary, Smartspace USA for an estimated consideration of £4.6m, payable in cash on completion, together with a further deferred payment of £0.4m, payable on receipt of corporation tax R&D tax credits.
AIM-listed workspace management software provider SmartSpace has announced the sale of its Enterprise software business to Colorado-based and Vista-backed digital signage software vendor Four Winds Interactive, for £5.0m (or 1.5x fiscal 2019 sales), of which £0.4m is deferred pending the receipt of a tax refund. The divestment rationale noted that this would remove the challenges faced in selling enterprise software (i.e. long sales cycles) and would enable the group to focus on its small-to-mid-market products SwipedOn and Space Connect.
SmartSpace Software PLC (LON:SMRT) shares has rocketed after computer infrastructure giant Softcat said it would start reselling the AIM-listed company’s workplace contact tracing and social distancing software.
SmartSpace, which used to be called RedstoneConnect, and the FTSE 250 group have signed a distribution agreement for the latter to resell the Space Connect workspace management software, which is said to include “a range of solutions to support your office returning to the workplace” as part of its new Covid-19 functionality.
Space management software supplier SmartSpace Software said it had signed a distribution agreement with Softcat to resell its workspace management solution.
The Space Connect solution would be offered to Softcat's customers as a solution to help them implement Covid-related policies in the workplace.
Smartspace said it had also recently secured additional enterprise customers for its Workplace platform, including an international law firm and an international news agency.
SmartSpace Software Plc (LON:SMRT), the leading provider of ‘Integrated Space Management Software’ for smart buildings, commercial spaces and hospitality, announced that trading for the year ended 31 January 2019 was in line with market expectations.
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Following the disposal of the Systems Integration and Managed Services divisions which completed in June 2018, SmartSpace has made significant progress in becoming a provider of integrated space management software. Modules developed so far include desk, meeting room and visitor management, wayfinding and event management. The company has also signed two major enterprise customers, one in the financial sector and one in the hospitality sector. Going forward, SmartSpace aims to provide greater visibility of forward revenues by targeting the self-serve and mid-range markets which can deliver pure SaaS revenues at higher margins. Acquisitions are also on the agenda and the example of Space Connect shows how significant synergies can be achieved through deals of this kind in a sector that is ripe for consolidation. Hold.
Against a volatile stock market that has hit many London-listed small-cap firms, software-as-a-service (SaaS) player SmartSpace has delivered steady performance so far this year, currently sitting at 84.7p. Following a major repositioning last year, the £18.8m business has been working hard to develop its wholly-owned platform aimed at addressing a growing need for space management solutions among companies. With SmartSpace recently painting a clear picture of its near-term growth plans in its full-year results, we spoke to chief executive Frank Beechinor about the company’s progress since our feature profile in January.
The business model is SaaS subscription focused, but a recent big banking deal covering 360 locations will be a hybrid of usage and licence revenue.
The acquisition of Swipe-On will help broaden Smartspace’s revenue base and will enable the business to be less dependent on enterprise-level deals. With a strong cash position, the enlarged group will be able to accelerate the ‘buy and build’ strategy, acting as a consolidator in the fragmented market for smart building software and services. The shares currently trade on a cash adjusted P/E of 10.1. Continue to buy."
Since August last year, volatile market conditions have pushed newly-rebranded software-as-a-service business SmartSpace (LSE:SMRT) down from highs of 109.5p to its current 90p. The firm’s flagship product is a platform that supports companies in their efforts to make the most out of their workspace as rents continue to increase and employees take an increasingly flexible approach to office hours. Here, CEO Frank Beechinor talks through SmartSpace’s efforts to bolster its product offering and customer base. With the company’s share looking so cheap, he also explains why he believes the ‘global phenomenon’ of workspace optimisation could provide an exciting investment opportunity.
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