Thursday, 15 October 2009

The tide may be turning for Invu

(By Philip Carnelley, 15 Oct 09, 10:00) Tiny document management software provider, Invu, seems to have at least hit bottom according to its interims announced today. The company has been on a real roller-coaster ride in the last couple of years. After growing 38% in FY08, to nearly £9m, (Invu revenues soar) they then plummeted in FY09 to £3.4m. Naturally the company made major changes – and also raised cash in a placing to give some breathing space (Invu raises £1.5m as revenues plummet). It has also just reached agreement in principle on a new £1.5m funding facility.

The latest figures seem to show things are working, slowly: While revenues are down 52% year-on-year, to £1.2m, they are up 33% sequentially. Cash burn has been reduced from £2m a year ago to £500k this half, though operating losses soared from £0.7m to £1.6m. Organisational changes this half have included a new CEO appointed in April and FD in August – brave men, both – and a focus on quality not quantity of business, particularly in managing its reseller channel. So it seems the rot may have stopped but clearly the company’s not out of the woods yet. As we saw at the Softworld exhibition this week, the number of companies in this space is plummeting, and the accounting companies that remain are seeking to add value by offering add-on document management facilities themselves. Invu is doing quite well to be still hanging in there.

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