2008 period end trading updateFebruary 3, 2009
FOR IMMEDIATE RELEASE
3 February 2009
2008 PERIOD END TRADING UPDATE
Globo plc ("Globo" or "the Group"; LSE-AIM:
GBO), a leader in the Information and Communications Technology market in Greece
and a SaaS (Software as a Service) solutions provider, today announces an update
on trading for the year ended 31 December 2008, its first full year since
Admission to AIM in December 2007, together with guidance for 2009.
Trading for the year was strong with revenue of
over €17 million, an increase of around 60% on the previous year and ahead of
consensus market expectations. Profit before tax is expected to show an increase
of more than 35%, broadly in line with consensus market expectations, with
operating cash flow increasing significantly to approximately €2.2 million.
However, due to the global financial crisis overall cash
flow has been affected by significant delays in payments by
customers, in particular on completed
government contracts, resulting in
an increase in borrowings. The Group
has adequate cash deposits and banking facilities for operational purposes.
Globo’s performance during the year reflects
progress across both the private and public sector segments of the business and
across all products and services of the Group (namely e-business, digitalisation
services, SaaS and WIFI networks), despite operating within a very difficult
Significant private sector contracts were
completed during 2008 including the Onassis Cardiologic
Cosmote, the Lambrakis Foundation and the Panhellenic
Organization for the Paraplegic and Disabled. Public
sector projects were delivered successfully for the General State Archives, the
Hellenic Parliament, the Ministry of Education and Religious Affairs, the Athens
University of Economics and Business and Agricultural Bank of Greece.
Profitel, the SaaS unit of the Group, expanded
significantly by adding new customers including Pfizer Hellas, Wilo Hellas, Naftomar
Shipping & Trading and Goldenport Ship Management.
A key development for Globo during the second
half year was the announcement of plans to enter the mobile applications market
with its CitronGO! product. As part of this development, the Group announced
recently that it has formed a new Globo Mobile business unit and acquired a 35%
interest and full management control of ReachFurther Communications Limited
("ReachFurther") to create a new sales channel for CitronGO!. ReachFurther has
established a strong position in the Greek market as a Value Added Service
provider and aggregator of mobile entertainment and mobile marketing services
with customers which include Vodafone, Wind and OTE in Greece, as well as Cyta
Globo has started 2009 with several new and
ongoing public and private sector projects including the Information Society of
Greece, the Ministry of Mercantile Marine, the Ministry of Environment, Physical
Planning and Public Works, the General Secretariat of
National Statistical Service of Greece and the
Prefecture of Messinia. Although it has a solid pipeline of new business, the
Group recognises that at this early stage in the year, the many uncertainties
that exist make it difficult to predict the outcome for 2009 with any accuracy.
The Board considers that it is prudent to expect that revenue growth, while
still significant, will be somewhat lower than previous expectations. Gross
margins are likely to be affected by the more cost conscious environment however
it is expected that a small growth
in profits will be achieved in 2009.
non-executive Chairman, Brett Miller commented: "In our
first full year as an AIM quoted company, we are pleased to have traded well
despite a tough economic background. However, it is inevitable that the current
global economic turmoil will affect our business although we remain confident
that we will trade profitably in 2009. We expect to release the full year
results in early April."
Costis Papadimitrakopoulos, Managing Director
Dimitris Gryparis, Finance Director
NCB Stockbrokers Limited (Nomad & Joint Broker)
Christopher Caldwell or Jonathan Gray
Simon Bloomfield or Steve Liebmann
St Helen’s Capital Plc (Joint Broker)
GLOBO plc was admitted to AIM in December 2007.
Founded in 1997 by Konstantinos Papadimitrakopoulos and headquartered in
Halandri (a suburb of Athens), Globo has established itself as one of the market
leaders in the Greek ICT market. It provides e-business and telecom software
products and related services to the private and governmental sectors in Greece
as well as developing and operating broadband wired and wireless networks. It
has developed to become one of the largest e-business software and SaaS. vendors
in Greece. More recently, the Group has formed a new business unit, Globo
Mobile, to deliver its mobile communications strategy. For further information
please go to www.globoplc.com.