Urbanise.com Annual Report 2019

Directors’ Report Business strategies and prospects Urbanise will continue to focus on growing its recurring revenue over the next twelve months. Contracted revenue is expected to increase significantly through continued growth of the Australasian, Middle East and South African strata market, combined with market share gains in the Australian, Middle East and South African facilities management market and greater penetration of the Urbanise Analytics platform. The Board believes that the strategic initiatives undertaken over the eighteen months position the Group well to deliver increased shareholder value over the medium to long term. Clear strategies are in place which, under the direction of sound leadership, ensure that the Group is well poised for future success. In the coming financial year Urbanise will continue to build on its solid foundation: –– Network effect of customer sign up is being realised –– No major competitor in Strata cloud market –– Facilities platform fast becoming a market leader in APAC –– Integrated strata and facilities offering is gaining traction –– Emphasis on achieving cash and profit break-even by driving sales and cost containment –– Further improve working capital position and free up cash with emphasis on trade receivables –– Convert signed customers to live Leveraging Recent Successes The contract wins in Australasia, Middle East and South Africa are examples of rollouts which will capture large sections of the residential and commercial value chains. Urbanise’s delivery models are readily transferrable across the Group’s current global footprint and beyond. Investment in Product Development Urbanise will continue to invest in product development to enhance existing solutions, expand the number of features and applications provided and develop new solutions. Urbanise is focussed on continuous improvement which includes offering customers upgrades designed to enable our customers to benefit from ongoing innovations. Build scale Urbanise has invested in operations in the Australasia, Middle East and South African regions, and will continue to grow scale in these regions while some of the development functions remain in Bulgaria. Further geographic expansion will occur only after critical mass has been achieved in the current geographies. Significant events after the balance sheet date Other than as already noted in the financial statements, there have been no significant subsequent events in the affairs of the Group at the date of this report. Likely developments The Group will continue to pursue its operating strategy to create shareholder value. In the opinion of the directors, disclosure of any further information would be likely to result in unreasonable prejudice to the Group. Environmental regulations The Group’s operations are not subject to any significant environmental regulation under Commonwealth or State regulations or laws. As a growing technology company, the Group has low power consumption. Outside of our electricity consumption in our global offices, a significant portion of energy consumption is through the data centres of AWS, our cloud services platform provider. AWS has a long-term commitment to 100% renewable energy use for its global infrastructure, and in 2018, more than 50% of their energy usage was from renewables. 19