Simble deal extension equates to 90% revenue increase

By Trevor Hoey. Published at May 27, 2019, in Technology

Simble Solutions Ltd (ASX:SIS), an Australian software company focused on energy SaaS and IoT solutions has extended its deal partnership with Australian technology company BidEnergy Ltd (ASX:BID) and UK energy broker UCR Consultants (UCR).

Simble will provide an enhanced technology solution, allowing a material expansion of the company’s existing agreement with UK energy broker UCR.

The introduction of BidEnergy’s Robotic Processing Automation (RPA) platform as a new feature bundled into Simble’s smart energy technology solutions will allow UCR to expand deployment to 60,000 metres ahead of schedule.

The updated deal is worth up to £3.5million (AU$6.4million) over a three-year term, a significant increase on the original deal struck in January which was valued at $3.4 million.

Importantly, this will result in a substantial increase in the group’s recurring revenues, providing financial stability and improved earnings visibility in the near to medium-term.

Targeting fast-growing energy broker market

Simble will target the fast-growing energy broker market in the UK, utilising BidEnergy’s RPA BidBilly platform to manage core data requirements for thousands of SME’s (small to medium enterprises) across the UK.

Through the front-end of BidEnergy’s RPA platform, Simble is able to seamlessly onboard clients, rapidly parse bill information and power Simble’s solution at the sub meter level.

This combined solution will allow UK businesses to reduce their energy consumption and their expenditure.

BidEnergy’s RPA Platform will seamlessly integrate with Simble’s smart energy technology solution and deliver superior value to customers of energy brokers.

The first energy broker to deploy the end-to-end solution will be Simble’s existing partner UCR Consultants, an energy broker with over 60,000 meters under management.

Proof of concept paves way for up to 60,000 meters

Simble’s partnership with UCR has delivered exciting results in the first four months, driven by strong customer demand and fast adoption of Simble’s disruptive energy analytics solution.

Following the successful proof of concept, UCR has signed a material expansion of the existing agreement to roll out the combined Simble and BidEnergy solution to up to 60,000 meters over an agreed timeframe.

The partnership with BidEnergy represents a major growth opportunity for Simble as it enables the company to leverage a growing footprint to cross-sell value-added solutions and acquire customers across a number of industry verticals with a comprehensive and significantly strengthened value proposition.

Recurring revenues as UCR targets 200,000 meters

To fast-track market penetration, UCR Consultants was appointed as a non-exclusive distributor to the UK energy broker channel targeting a further 200,000 meters, a four-fold increase on the initial target market announced in mid-January.

Over 2 million meters are serviced by energy brokers in the UK, highlighting the significant market opportunity for Simble which is valued at approximately $28 million.

As the rollout commences immediately, Simble expects to deliver substantial recurring revenues from this partnership, targeting monthly six figure income streams within the first 12 months.

Additional resources will be allocated towards the UK to maximise value from this partnership and further accelerate business momentum.

Highlighting Simble’s progress to date and the success of its partnership focused strategy, chief executive Fadi Geha said, "Everything we have been working on since our IPO (initial public offering) is coming together in this deal.

“Our partnership focused growth strategy will deliver value and significant revenues to all parties involved and allow us to offer end-customers the best of all solutions.

“We have a head start in the UK and the inclusion of BidEnergy’s solution allows us to scale faster, deliver more meaningful revenues and acquire more customers with a comprehensive and significantly strengthened value proposition."

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