Workplace Systems International (WSI)
ISR viewWhilst the recession has had a signficant impact on Workplace, the weaker financial performance has masked substantial strategic development of the company with the launch of the SaaS product WorkPlace OnLine. Whilst it is early days, prospects for this new product look very encouraging.
Primed for accelerated growth
Workplace Systems International | Download | Published on 01/09/2011Workforce management software specialist Workplace Systems has announced a slew of new contract wins for its SaaS solution WorkPlace OnLine providing a total of £1.2m of new recurring revenue for the company. We have left our estimates unchanged but these deals significantly underpin expectations.
Workplace shares, which have more than doubled in the last year, trade on 1.7x revenue and an EV/EBITDA multiple of 11.3x. We believe that this relatively high valuation reflects investor excitement about the prospects for WorkPlace OnLine and the news flow from the company increasingly seems to warrant that level of excitement. Indeed, if the product has reached a level of critical mass as we suspect, there could be significant upside to both the valuation and estimates for fiscal 2013 and beyond.