Aggressive expansion dents AppSense profits
EXPANSION, particularly in the US, has dented profits at AppSense, the pioneering software company, it emerged today.
Financial results for the year to July 1 2011, show that while turnover jumped 37% to £39.7m, profits fell 14% from £3.8m to £3.3m as a result of what founder and chairman Charles Sharland said was due to “the controlled investment undertaken during the financial year.”
Administration expenses rose by 37% from £23.1m to £32.2m as a result of continued investment in new and existing products, and growing the international sales and marketing functions,
AppSense is a pioneer of user virtualization software, which allows computer users to access their work desktop from any other computer, increasing flexibility and making organisations more efficient.
The results for Daresbury-based AppSense Holdings show that during the year, total staff numbers rose from 185 to 291, with the US operation accounting for much of this growth as it expanded from 47 to 98 and also relocated to a new, larger base in Manhattan, New York.
AppSense, which last February sold a $70m stake to global investment bank Goldman Sachs, hopes to float on the New York Stock Exchange in 2013 and have grown revenues to $100m by then.
The results show that the US – where AppSense now has sales teams in 24 states – replaced the UK as the largest market by sales.
Sales there more than doubled, from £8.1m to £18.1m, while the UK was largely unchanged at £10.3m, compared with £10.3m in 2010.
Sales in Europe rose from £7m to £7.6m and from £2.9m to £3.6m in the rest of the world.
Looking ahead Mr Sharland said international growth would continue to be a focus – the company has already revealed plans to open offices in Brazil, Hong Kong and Singapore this year.
He added: “There will be further controlled investment in sales and marketing activities and general recruitment, the increased headcount will result in the necessity to source additional office facilities.”
He also said the group would look to develop new products and is planning to launch a subscription-based product offer for small and medium-sized corporates.
