AGM StatementJune 17, 2011
FOR IMMEDIATE RELEASE
17 June 2011
Pre-AGM trading update
Globo plc (“Globo” or “the Group”; LSE-AIM: GBO), the international IT, mobile solutions and S.a.a.S group, is providing a trading update ahead of its Annual General Meeting which is being held at 11am today.
Trading for the first half of 2011 so far has been in line with market expectations with revenue and profit significantly ahead of the comparable period in 2010. This reflects the Group’s continuing focus on developing its mobile international business which is contributing strongly to Globo’s overall financial performance.
The Group is continuing its successful strategy of expanding the international footprint of CitronGO! and GO!Social through distribution partnerships with major market players. In April, Globo won contracts with two Mobile Network Operators in the Middle East, as well as signing distribution agreements with resellers in Africa, Middle East, India, SE Asia, Europe and Latin America.
At the same time as expanding its international footprint, demand for Globo’s mobile offering is accelerating rapidly and recurring revenues are increasing, with Mobile Network Operators actively promoting the use of Mobile Internet messaging and Social Networking to their customers. As a result, the Group’s active subscriber base on its Mobile platforms is growing as customers increasingly recognise the quality and benefits of Globo’s solutions.
At the same time as achieving a strong financial performance from CitronGO!, the Group is laying the foundations for longer term growth from the enterprise market with a product utilising Globo’s proprietary ‘cloud’ technology platform. At GSM 2011 in Barcelona in February, the Group launched GO!Enterprise Server which has created intense interest in its target market which comprises enterprises of all sizes in the US, UK, Europe and Australia.
Uniquely, GO!Enterprise Server offers corporate application and content access through native mobile clients running on all smartphones (Android, iPhone, Windows Phone 7, Blackberry), tablet devices (iPad, Android), and feature phones through J2ME client or Wap and Web interface.
Currently, closed group testing of GO!Enterprise Server is underway with existing CitronGO! customers and the Group is developing its commercial roll-out strategy involving partnerships with organisations, including Mobile Network Operators, System and Software integrators and vendors, and hosting providers, which will distribute the GO!Enterprise Server solution in their markets.
The full commercial launch of GO!Enterprise Server is planned to take place during the second half of the year with the first contribution to revenue expected towards the end of 2011. The Group believes that the upside potential for GO!Enterprise Server is enormous and management is excited about the opportunity it offers to achieve substantial profitable growth over the coming years.
International revenues are also strengthened by the contribution from the Group’s Mobile Value Added Services (VAS) business, Reach Further Communications, as well its WiFi offering which signed its first international WiPLUS franchise agreement earlier this year.
In its traditional markets, the Group continues to make significant progress in expanding its private sector customer base. Demand for Globo’s products and services continues to grow with revenues coming from software projects, and its SaaS offering through its Profitel division which is achieving success particularly in the SME market segment.
The Group’s forward order book for project delivery during 2011, currently worth approximately €12.6 million, is growing with revenues further strengthened by solid recurring revenue streams from Globo’s Mobile, SaaS and WiFi offerings which continue to grow.
The successful completion of the £17.25 million share placing in February 2011, has transformed the Group’s balance sheet which now shows a net cash position. In addition to providing the Group with the financial resources to invest in accelerating the expansion of the international business, the reduced bank debt has resulted in significantly lower finance charges.
Globo’s non-executive Chairman, Brett Miller commented:
“Over the past few years, Globo has been able to sustain profitable growth whilst investing in developing leading new technology solutions which have successfully launched into international markets.
“We believe we are now entering the most exciting phase in Globo’s growth. We are investing the funds raised from the share placing in February to accelerate our international expansion and market footprint.
“In addition to the continuing success of CitronGO! in emerging economies, we now have a substantial opportunity, through GO!Enterprise Server, to address the enterprise market with the potential to transform our longer term growth prospects.
“Overall, we are confident that 2011 will be a year of significant strategic progress and profitable growth for the company.”
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
Daniel Stewart & Company Plc (Nomad & Broker)
Paul Shackleton or Martin Lampshire