AD1 Holdings (ASX: AD1) has unveiled a 22% boost to revenue for the half year ending December 2020.
The company’s revenue rose to more than $2.2 million, while it narrowed its net loss for the period by 4% to $1.6 million.
AD1 attributed the higher revenue to a combination of new customers, organic growth with existing clients and the acquisition of Art of Mentoring.
Milestones driving future growth
Also laying the groundwork for the rise in revenue was the achievement of several milestones, which will also underpin future growth, while “maintaining sustainable profitability”.
AD1 noted the milestones included multi-year contract extensions with two of its oldest career-platform customers – the Government of New South Wales, and the Government of Victoria.
Two “important new customers” were also signed during the period which are using AD1’s utilities solutions, while customer retention rate was 95% across all AD1 solutions.
Art of Mentoring acquisition
A particular milestone during H1 2021 was AD1 acquisition of Art of Mentoring in October.
The new company has added a complimentary revenue stream of $1 million.
Since acquiring Art of Mentoring, it has onboarded eight new clients including notable organisations such as Toyota Australia, Fair Work Ombudsman, Aurizon and the Royal Australian Navy.
Locality Planning Energy contract
Following the H1 2021 period, AD1 revealed it had collared a “landmark” five year contract with energy retailer Locality Planning Energy.
The contract is estimated to be worth about $10 million over the five years and expands on a previous deal.
AD1 is already providing billing and operations software as a service solutions to the energy retailer and under the increased contract scope will now offer sales intelligence and customer portals.
Targets for H2 2021
As H2 2021 advances, AD1 said it will progress from a stabilisation and expansion phase to “growth acceleration”.
To help drive this is a “strong pipeline” of project revenue for H2 2021 and beyond, with AD1 noting this was especially the case for existing customers in the utilities sector.
Over the next six months, in the utilities sector, AD1 will focus on ensuring successful implementation of contracts for both new and existing customers, while also delivering its project pipeline.
To support this, AD1 will invest in additional delivery capacity over H1 2021.
Another potential revenue generator will be AD1’s plan to introduce an off-the-shelf solution for small to medium enterprises and large employers – targeting healthcare, education and training, professional services, utilities and construction.
The company expects to launch this in the September quarter.
AD1 also noted it was still on the look out for value accretive acquisitions to diversity and grow revenue.