Esker (PA:ALESK) has reported Q416 and FY16 revenues in line with our forecasts. Strong growth in new contracts combined with c 80% recurring revenues support continued growth and the company expects to generate double-digit organic revenue growth in FY17. We leave our forecasts unchanged pending full-year results in March. We note that Esker had net cash of €15.9m at the end of FY16, providing ample funds for investment to drive growth.
Esker has reported Q416 revenues of €17.5m, which results in FY16 revenues of €66.0m, in line with our forecast. Q4 revenues grew 9% y-o-y, in both reported and constant currency terms. FY16 revenues grew 13% (12% constant currency and like-for-like). This growth was achieved despite declining legacy product revenues (€0.9m in Q416 vs €1.0m in Q316 and €1.3m in Q415), and the company noted that this decline is likely to act as a drag on group revenue growth in Q117.
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