The firm reported a 24% rise in revenue in the first half of the current year. Indeed, the global market for ‘narrow’ AI, where robots perform a specific task such as in administrative work, is forecast to grow by around 33% per year to 2026.Īn encouraging industry growth rate is evident in Blue Prism’s recent sales performance. Its capacity to reduce costs and boost profitability across a wide range of industries could mean it has an encouraging outlook. It has over 2,000 customers, with 30% of them from the Forbes Global 2,000. The company’s offering has so far been well-received. ![]() They allow human workers to focus on higher-value tasks, while leaving their robot ‘peers’ to conduct administrative and other back-office tasks that may require less skill. This essentially means that it provides autonomous multi-skilled software robots that can perform a range of repetitive tasks across a variety of industries. The firm focuses on Robotic Process Automation software. This article was first published on 25 January 2018 at out moreOf course, Blue Prism’s AI offering could make it an enticing proposition to a wide range of investors. Partners include many blue-chip global organisations such as Accenture, Deloitte, Capgemini, Hewlett Packard Enterprise and IBM. The key to Blue Prism rapid success is its extensive channel partner network of IT-based consultancies and infrastructure groups that resell the platform. Not only does this improve input accuracy and speed, it also helps customer organisations reduce running costs by freeing the human workforce to concentrate on other valued-added tasks. RPA software works by mimicking computer keyboard inputs a human would perform on an application user interface (UI) to perform routine rule-based clerical administration tasks. That meant pre-tax losses almost doubling to £9.5m. Such rapid growth needs to be balanced versus still enormous cash burn, which totalled £8.3m last year. The real problem for investors is how to value the business. All of those early share price losses have been wiped out as of 10am, leaving the stock back where it started at £13.50. It appears investors have gradually awoken to these factors as the trading continues into mid-morning on Thursday. With the added firepower from this morning’s placing and already noting a strong start the year, 2018 looks like it could be another milestone period for the business. That means they can be relied on to repeat for the term of the contract, typically three years. What’s more, 90% of the £24.5m revenues earned in the year to 31 October 2017 are recurring licences. Blue Prism just can’t stop growing, with the 2017 results showing exceptional levels of increasingly international growth from new and existing customers. He flogged less than 10% of his stake and so retains a position I the company worth millions of pounds. It is important to note that Alastair Bathgate, largely the brains behind Blue Prism, remains a significant stake owner even after today’s sales. Begrudging a team that has created such significant value for shareholders, on paper at least, a chance to cash-in some of their own chips is unfair, not to mention unrealistic. ![]() ![]() In that time there have been no significant share sales from founder and board members. ![]() Since joining AIM on 18 March 2016 at 78p the share price has soared, chalking-up a 1,630% return based on yesterday’s close. First, the stock's rise has been meteoric. There’s two important points to consider here. Then there was an extra £40m cash call, via a discounted share placing.įull year results to 31 October were also unveiled. Word that directors were falling over themselves to flog £30m worth of stock appears to have spooked many investors. Inside an hour of the market open the stock had slumped nearly 10% from last night’s £13.50 close. The market’s knee-jerk reaction to today’s multiple news from automation software outfit Blue Prism ( PRSM:AIM ) was pretty bad.
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