REPORT AND FINANCIAL STATEMENTS YEAR ... online merchandising and eCommerce personalization for...

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  • REPORT AND FINANCIAL STATEMENTS

    YEAR ENDED 31 DECEMBER 2017

    COMPANY NUMBER: 8904529

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    OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS

    A T A G L A N C E 2 0 1 7 H I G H L I G H T S

    £ 1 3 . 6 2 2 £ 6 2 K REVENUE

    (2016: £3.6M)

    NEW LOGOS

    (2016: 13)

    AVERAGE SAAS

    REVENUE PER LOGO

    (2016: £41K)

    OVERVIEW

    AT A GLANCE

    WHAT WE DO

    ATTRAQT’S JOURNEY

    STRATEGIC REPORT

    INTERIM EXECUTIVE CHAIRMAN’S STATEMENT

    BUSINESS MODEL

    MARKET OVERVIEW

    COMPETITIVE STRATEGY

    GROWTH STRATEGY

    KEY PERFORMANCE INDICATORS (KPIS)

    RISK OVERVIEW

    BOARD OF DIRECTORS

    E X E C U T I V E T E A M

    C H I E F F I N A N C I A L O F F I C E R ’ S S TAT E M E N T

    G O V E R N A N C E

    C O R P O R AT E G O V E R N A N C E R E P O R T

    A U D I T C O M M I T T E E R E P O R T

    R E M U N E R AT I O N C O M M I T T E E R E P O R T

    D I R E C T O R S ’ R E P O R T

    I N D E P E N D E N T A U D I T O R ' S R E P O R T

    F I N A N C I A L S T A T E M E N T S

    C O M P A N Y I N F O R M A T I O N

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    6

    1 0

    1 2

    1 4

    1 4

    1 5

    1 6

    1 8

    2 0

    2 2

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    2 6

    2 7

    3 0

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    7 6

    C O N T E N T S

    2 0 1 7 K E Y C O M P A N Y F A C T S

    1 8 8 LOGOS

    6 OFFICES WORLDWIDE

    1 3 0 + EMPLOYEES

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    O N S I T E S E A R C H Understanding customer search behavior is key to executing retail strategy. We have been an onsite search leader for more than 15 years, offering high relevance search results – including synonym translation, auto-correction and real-time suggestions as a customer types – and the ability to search in more than 40 languages.

    O N L I N E M E R C H A N D I S I N G Whatever a retailer’s objective, ATTRAQT makes sure an online shop always shines. With the ability to adjust online merchandising to fulfil a targeted strategy or even create theme-based campaigns, through ATTRAQT’s automated or human-guided interface, we make sure products are displayed just how a retailer wants them.

    E C O M M E R C E P E R S O N A L I Z A T I O N When you add that little extra touch, customers notice and respond. Through extras such as personalized adjustments and personalized recommendations, we enable retailers to take up-sell and cross-sell to whole new levels.

    W H A T W E D O

    ATTRAQT provides cloud-based SaaS solutions that maximize the conversion of browsers into buyers via onsite search, online merchandising and eCommerce personalization for online retailers. With easy-to-use interfaces and effective technology, ATTRAQT helps retailers make their online shop as attractive and successful as their brick-and-mortar stores.

    ATTRAQT’s three core best of breed technologies are feature rich and are built in to both our Fredhopper and Freestyle Merchandising solutions:

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    OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS

    A T T R A Q T ’ S J O U R N E Y

    H I S T O R Y

    Our founders realized that the right onsite search technology was central to helping customers truly embrace online shopping, and so launched a new solution for the market. That technology was known as Locayta, and it remains integral to our solutions today.

    With online shopping well established, customers began to demand uniqueness and value from their shopping experiences. Retailers were trying to replicate traditional merchandising techniques in an online environment, and also trying to encourage customers to respond as instinctively to special offers on line as they did in stores. And so, we turned our attention to these key areas where online retailing was failing to keep pace with the high street.

    We launched Freestyle Merchandising, a sophisticated cloud-based SaaS solution that today powers onsite search, online merchandising and eCommerce personalization for many of the world’s leading brands.

    ATTRAQT was born. This was an exciting year for us as we also listed on AlM.

    ATTRAQT acquired Fredhopper, a company that has achieved impressive growth since 2000 by investing early in the untapped potential of onsite search. An integral part of our solution portfolio, combining unique search, merchandising and personalization technologies with an innovative, enterprise level interface.

    As eCommerce continues to evolve, we’ll be innovating and introducing disruptive new technologies to drive online sales, increase conversion and enhance the shopping experience for retail customers.

    ‘ATTRAQT’ originates from the key ways a retailer can draw people to its products, particularly through onsite search, online merchandising and eCommerce personalization.

    The ‘Q’ represents a color wheel, familiar in merchandising and retail, with the color of the Q-tail switched to represent the added control provided by our solutions.

    A L L I N A N A M E

    2 0 0 3

    2 0 0 8

    2 0 0 9

    2 0 1 4

    2 0 1 7

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    I N T E R I M E X E C U T I V E

    C H A I R M A N S S T A T E M E N T

    In what has been a milestone year, ATTRAQT’s vision and strategy remains the same, to become the eCommerce acceleration platform of choice for online retailers across the globe. We continue to service an enviable client list, providing support for a range of leading online retailers and household names including ASOS, House of Fraser and The North Face.

    D R I V I N G B E S T O F B R E E D A C R O S S

    A T T R A Q T The acquisition of Fredhopper has been a great success and the team has worked hard to ensure that both the integration, and the period following, have gone smoothly with no disruption to customers. I would like to thank the team for their support during this period.

    The technologies and competences of the two solutions are extremely complementary, and we have an opportunity to benefit further from the wider capabilities of these. As such, we have begun to converge some of the underlying technology, for example enhancing the Fredhopper reporting capability by utilising existing Freestyle Merchandising functionality and improving the Freestyle Merchandising data importing by employing the Fredhopper data services platform.

    We also have initiatives to leverage best practice in terms of purchasing, operational management and client on-boarding across ATTRAQT.

    M A N A G E M E N T C H A N G E Post period end, André Brown stepped down as Chief Executive Officer and I assumed the role of Interim Executive Chairman. André was an original founder of the business and led ATTRAQT for the past 15 years. The Board would like to take this opportunity to again thank André for his considerable contribution.

    I am pleased to report that ATTRAQT benefits from a strong and experienced senior management team, supported by very capable middle managers, who have been encouraged to take greater ownership for the performance and results of the business as we grow.

    I am leading a process to identify and appoint a new chief executive with the experience and capability to lead the enlarged company and the next phase of ATTRAQT’s evolution.

    R E V I E W O F S A L E S & O P E R A T I O N S The momentum of new wins has continued with 22 new logos in the year including Arc’teryx, Auchan, Beauty Bay, Hunter Boots and The White Company. The average SaaS revenue per logo has increased by 51% to £62k (2016: £41k), as ATTRAQT’s solutions are taken up by larger, enterprise-grade clients. The ability to attract this type of client was a key part of the rationale behind the Fredhopper acquisition and has been an important addition to our progress in 2017.

    ATTRAQT has also seen a healthy increase in the value of extensions – for example rolling out into customers’ websites covering additional geographies, upgrades – offering incremental functionality and capability, and renewals over the period, demonstrating the importance of increased function capability to our clients.

    ATTRAQT remains committed to the ongoing innovation of its products and services, ensuring that we continue to offer the most innovative and valuable solutions for our clients in the market. Our product

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    roadmap is a key component in helping to minimise the risk of customer attrition and provides incremental revenue opportunities for the Company.

    We have also increased focus on minimising attrition and improving customer service and satisfaction through the hiring of additional Customer Success Managers.

    I am pleased to report that the performance of managed services through the high demand peak trading period was very good, with requests across our two solutions serving growth of 115% on Black Friday, when compared with the same holiday in 2016. My thanks to the Company’s Operation Team.

    I N T E R N A T I O N A L G R O W T H Over the period ATTRAQT has contitinued to build its presence steadily in many of its key regions internationally, with significant new client wins globally. We believe that there is substantial untapped opportunity in Continental Europe where we have recently won an important new contract, which is forecast to go live in the first q