Shares of Solium Capital (TSX:SUM) are up today after the company reported a strong start to its fiscal 2014.
In its Q1, Solium earned $4.6-million on revenue of 21.7-million, a topline increase of 20% over the same period last year. The bottom line number represented a 71% increase.
The company credits organic growth for driving the quarter. Management says it saw strong license and subscription fee gains, although it admitted that this transaction-based revenue is typically higher in the first quarter of any given year.
Looking ahead, Solium says it will look to further growth by tax and regulatory compliance features into its existing Shareworks platform, a process that began with the January acquisition of GlobalSharePlans, which it has rebranded as Solium GSP.
Calgary-based Solium Capital, which was founded in 1999, helps companies sort through the regulatory tangle that is equity-based compensation. This type of remuneration, which 97% of companies offer their employees, is extremely complex because of changing regulatory environments, employee churn and localized rules. Until last year, Solium concentrated largely on the Canadian market, but has recently scaled up to capitalize on opportunities in the U.S. and U.K.
At press time, shares of Solium Capital were up 6% to $7.28.