N+1 Singer - ATTRAQT Group - Growing pains, but opportunity remains attractive

Following a detailed review of the group’s forecasts, ATTRAQT has revised its full year outlook to take a more conservative view on the timing of certain new contracts and the on-boarding timeframe for recent client wins. The pipeline remains strong but conversion has been delayed, resulting in a c.10% reduction in revenue expectations. This would still equate to high single digit organic growth and, importantly, the group remains on track to deliver EBITDA profitability in H2’17. We have temporarily suspended our forecasts while we assess the impact on outer year numbers but with an order book of £2.0M Annualised Contract Value, we believe the group remains well placed to show significant growth in FY’18 and beyond. While today’s announcement is clearly disappointing, growing pains of this nature are not uncommon in early stage growth businesses and we remain excited about the group’s opportunity to address the 56,000 online retailers it can target with its technology.