RNS Number : 8147R
Globo plc
31 October 2013
 



FOR IMMEDIATE RELEASE

Thursday, 31 October 2013


Globo Plc ('Globo' or 'the Group')

Q3 t
rading update & publication of additional information

 

Trading update

 

So far in the second half of 2013, Globo has continued to achieve strong growth with revenues for the nine months ended 30 September 2013 up 58 per cent on the same period in 2012 to €50.01 million.  This performance, which is ahead of management expectations, reflects growth in demand in both the enterprise and consumer businesses.

 

Overall, cash flows during the third quarter have generated positive free cash flow of €0.4 million resulting in a net cash position for the Group of €11.2 million (30/6/2013: €10.8 million). The Board is confident that cash flow will further improve as the Group continues to penetrate more mature markets which will improve the rate of collection of receivables.

 

Since the interim results, the Group has completed the acquisition of Notify Technologies Inc. to augment the GO!Enterprise offering. The subsequent fundraising of £24 million (gross) has strengthened the balance sheet and provides the basis for further expansion.  As a result, and combined with continuing profitable growth, the Board is confident in the Group's future financial performance.

 

Publication of additional information

 

Following the announcement of 28 October 2013, Globo has published additional information which provides further insight into:

 

a)  the disposal of 51 per cent of Globo Technologies S.A. ("GT") in December 2012;

b)  revenue recognition, collection of receivables and working capital; and

c)  R&D capitalisation and amortisation and its financial impact.

 

This information is available on Globo's website at http://www.globoplc.com/default.aspx?lang=en-GB&page=14.

 

Disposal of 51 per cent of Globo Technologies S.A ("GT")

 

The decision to dispose of GT followed careful consideration of a range of factors including the management decision to focus on expanding the Group's international mobile business.

 

The consideration of €11.2 million was based on an independently verified valuation of GT, and the Group has received prompt payment of the amounts due under the payment schedule, which is up to date.

 

Net debt of €0.23 million (consisting of debt of €7.29 million and cash of €7.06 million) was transferred to GT as part of the disposal. 

No trade receivables due to Globo were moved off-balance sheet as part of the disposal. 

Since disposal, GT has operated independently of Globo with no management relationship existing between GT and the Group.

 

Revenue recognition, collection of receivables and working capital

 

Revenue is recognised in accordance with the Company's accounting policies, in compliance with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS), set out in the 2012 annual report. 

 

Collection of receivables is in accordance with Globo's terms of business which reflect local factors, including currency export and other regulations that apply in different countries.

 

R&D capitalisation and amortisation

 

Globo's accounting policies for R&D capitalisation and amortisation fully comply with IFRS and have been consistently applied since inception.

 

Costis Papadimitrakopoulos, CEO commented:

 

"Since floating on AIM 6 years ago, Globo has achieved tremendous success in redefining its technology, products and market focus and we continue to set ambitious growth targets.

 

Further improvements in the product line and a significant shift towards Western markets are underway as we focus our efforts on establishing Globo in Enterprise Mobility, one of the biggest global technology markets.

 

Globo is attracting major interest from international partners and customers that chose to invest in our technology, as well as being recognised by leading firms of industry analysts.

 

We are delighted that our shareholders recognise the progress we are making and support our growth strategy."

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CONTACTS

Globo plc

+44 20-7378-8828

Costis Papadimitrakopoulos, CEO


Dimitris Gryparis, Finance Director


Mike Jeremy, Investor Relations Officer


RBC Capital Markets

+44 20-7653-4000

(Nominated Adviser & Broker)


Stephen Foss, Pierre Schreuder or Daniel Conti


Bankside Consultants

+44 20-7367-8888

Simon Bloomfield  


 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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