The stock has grown over 580% in less than two years.
Companies: Sopheon plc
Sopheon (LON: SPE) has released a trading update today that has sent the stock climbing in early morning trading.
Shares in SPE rose 22% to 444p as Management gave its first indication of the Group's FY17 performance.
The group provides software and other solutions including resource planning, road mapping and analytics to a wide range of industries including aerospace, defence, tech and industrial. It has a portfolio of top-tier clients such as Nasa, Philips, Siemens, Basf as well as Procter and Gamble.
Management said the Group has seen "solid growth" in 2017 with "particular strength" in Q4 and as a consequence:
"Early indications are that revenues, EBITDA and pre-tax profits for the year ended 31 December 2017 will all exceed market expectations. In addition, we expect improved recurring revenue and visibility into 2018."
The Group will now report its full-year results on March 22.
Shares in SPE began rallying in early 2016 and have grown from a price of 65p per share in February 2016 to today's current price of 444p less than two years later - growth of over 580%.
Broker Progressive Equity Research recently attended a European user forum held by the Group, and was extremely positive about it in their note today:
"Given today’s positive RNS announcement, and our experience at the customer event, it appears to us that Sopheon remains very well positioned, and is continuing to deliver on [its] potential."
Prior to today's update consensus was forecasting it would report Revenues of c. £26 and c. £30m in FY17 and FY18 respectively, compared to the £23.2 reported in FY16.
Currently, SPE trades on a forecast price-to-earnings multiple of 13x versus the industry median of 17x, with a TTM cash balance of £11.5m and an operating margin of 14%.
