Decent announcement from RPM Global this morning.

RPMGlobal Holdings Limited (ASX: RUL) [RPM ®], is pleased to provide the following update on Total Contracted Value (TCV) derived from software sales and expected Operating EBITDA for FY2023.

For FY2023 Total Contracted Value (TCV) derived from software sales increased by $14.3 million (25.4%) over the previous year to $70.5 million (FY2022: $56.2 million).

TCV from subscription sales finished at $65.8 million (FY2022: $54.1 million), perpetual sales at $2.9 million (FY2022: $1.8 million) and new maintenance revenue from perpetual sales at $1.8 million (FY2022: $0.3 million).

The company now has $126 million in pre-contracted, recurring, non-cancellable software revenue, which will be recognised in future years, up $31 million (32%) from the same time last year (FY2022: $96 million).

The $65.8 million in TCV software subscription sales is going to deliver Annually Recurring Revenue (ARR) of $11 million. As at today’s date the total value of ARR is $55 million, $42 million from subscriptions and $13 million from maintenance.

The company’s Advisory team had a really strong year and is expected to finish the year with a contribution of $6.3 million, an increase of $2.2 million (54%) over FY2022 ($4.1 million).

Operating EBITDA (before once-off management incentives) is now expected to finish the year at $15 million. This result is directly comparable to the company’s February EBITDA guidance of $13.8 million ($14.2 million less M&A costs of $0.4 million).

The over performance in both the Advisory and Software divisions resulted in once-off management incentives of $3 million being earned.

Operating EBITDA, after management incentives is expected to finish the year at $12 million (FY2022 (excluding COVID subsidies: $3.5 million)) an increase of $8.5 million or 243%.

The company had cash on hand (and no debt) of $34.7 million as at 30 June 2023 (30 June 2022: $34.5 million) after spending $7.6 million during the year on the company’s share buyback and $0.9 million on company acquisitions.

Subject to finalisation of the audit, RPM expects to release its FY2023 full year audited results in late August 2023.

Authorised by: James O’Neill Company Secretary +61 7 3100 7200