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.
Turning a SaaS corner
Workplace Systems International | Download | Published on 03/12/2010Workforce management software vendor Workplace Systems has issued interim results which reflect delays in closing orders and investment in growth. However, it is also clear that business picked up sharply towards the end of the period as a number of long awaited new orders dropped into place. So, whilst profitability this year will now be weaker than expected, the much more significant point is that it now seems clear that the company’s SaaS strategy is likely to pay off for investors.
Recognition of this is starting to feed through into the shares which have gone up by a third in last few weeks (confounding our rather conservative short term expectations). Given the clear evidence of emerging success in the SaaS strategy, we expect continued outperformance and, putting the shares on an appropriate premium based on 2012 earnings would imply another 50% upside from here over the next 12 months