Urbanise.com Annual Report 2019

2 Annual Report 2019 Urbanise.com Limited Dear Shareholder, Urbanise delivered another exceptional year of revenue growth and customer success in FY19. The changes implemented in the second half of FY18, together with the management capability have positioned the company for growth and operational performance. Financial Performance The highlights of FY19 are: –– Revenue: $8.1m (FY18: $5.4m) –– EBITDA after impairment: $3.5m loss (FY18: $25.1m loss) –– Closing cash: $3.7m including $3.8m net proceeds from capital raising (FY18: $3.1m) Looking back over the past three years, revenue has increased significantly by 73% since FY17. This is due to the demand for our platforms and our ability to rapidly implement. It was pleasing to see continued progress in the recurring revenue base, which increased from $3.7m to $6.0m. This is a clear indication of the value placed by our customers on our platforms, as an integral component of their day- to-day operations and data management. Changes implemented from the second half of FY18 and continuing through FY19 have significantly reduced the cash used. In FY19, cash used averaged at $273k per month (FY18: $810k per month). No impairment costs were booked in FY19 (FY19: $15.6m). Board and Management During FY19, the following changes occurred in the Board and Management team: –– Gary Bugden ceased as Non-Executive Director on 21 November 2018. –– Tod McGrouther was appointed to the Board as Non-Executive Director on 16 October 2018. –– David Cronin was appointed to the Board as Non- Executive Director on 14 January 2019. –– Saurabh Jain was promoted to CEO and appointed to the Board on 21 January 2019. –– Almero Strauss returned to the position of Non- Executive Director and Chairman of the Board on 21 January 2019. The Board has approved an executive remuneration structure that includes Short Term Cash Incentives (STI) and Long-Term Share based Incentives (LTI) for the Management team. The structure will ensure management is rewarded to deliver increased shareholder value and create an employer brand, which organically attracts and retains executive talent, and in turn, contributes to higher levels of company performance and results. Outlook Urbanise will continue to focus on delivering continued growth in its recurring revenue base, building on the success of FY19. The company is focussed on increasing sustainable revenue, contain costs and improve working capital to achieve positive profit and cash : –– Growth will be delivered within the core business and markets, while we continue to develop and improve our products –– Cost and cash flow will be managed through continued cost containment and a focus on trade receivables On behalf of the Board, I would like to thank: –– Our shareholders for their support in the future of the Group; –– Our customers for their continued loyal support; –– Our employees for their ongoing hard work and commitment; and –– My fellow Directors for their insight, guidance and valuable input. Almero Strauss Chairman Chairman’s Overview