H1 Trading UpdateJuly 28, 2014
FOR IMMEDIATE RELEASE 28 July 2014
(“Globo” or the “Group”)
H1 Trading Update
Globo plc (LSE-AIM: GBO), the international provider of enterprise mobility management solutions and software as a service, today provides a trading update for the six months ended 30 June 2014.
The Board is pleased to report that Globo has achieved a strong financial performance in the first half of 2014, ahead of market expectations. This performance was underpinned by the continued demand for our mobility products, successful customer and project wins and expansion of our geographic and partner distribution reach.
· H1 revenues from continuing operations grew by 45% to €46.5 million, slightly ahead of market expectations (H1 2013: €32 million)
o Revenue increase was predominantly driven by organic licence and services growth
· Profit before tax is expected to be slightly ahead of market expectations
· Globo generated Free Cash Flow driven by an increased weighting towards GO!Enterprise sales, which have a shorter cash collection cycle
· The Group’s cash position at 30 June 2014 was €67.8 million (Year End 2013: €64.2 million) and the net cash position was €46 million (Year End 2013: €42.8 million)
· GO!Enterprise revenue was driven by sales of Enterprise Mobility Management (“EMM”), our Mobile Application Development Platform (“MADP”) and Mobility Business Solutions (“MBS”) division, reflecting continued strong adoption of mobile solutions by businesses of all sizes
· Globo’s consumer products also continued to grow at healthy rates:
o GO!Enterprise generated sales of €19.9 million, a year-on-year increase of 95% (H1 2013: €10.2 million)
o Consumer mobile services (CitronGO! and GO!Social) achieved revenues of €20.1 million, a year-on-year increase of 12% (H1 2013: €17.9 million)
· Recent customer wins:
o The recent contract win in Australia with the New South Wales Health Administration delivered through MobiliseIT (Globo’s partner) and Optus (Australian MNO) has already yielded an initial sale of 6,000 GO!Enterprise licences. Globo will also provide support, application development services and consulting on a continuing basis.
o Other new customer wins include Siemens, TUI, TNT, PeopleCert and Intracom Telecom.
· Acquisition of Sourcebits Inc.:
o The Group recently completed the acquisition of the services division of Sourcebits Inc., a San Francisco-based developer of mobile applications with a significant developer capability in Bangalore. Sourcebits has an established client base including Intel, SAP, P&G, The Coca-Cola Co., Bank of America, Columbia University and Hershey’s; there is minimal overlap between the two companies’ client bases. Sourcebits is being integrated into Globo’s MBS division.
· United States Expansion:
o Following the acquisition of Notify Technology Inc in October 2013, Globo expanded its operations in the US, adding executives, sales and technical personnel in order to address the significant US market opportunity in EMM and MADP. Today almost 25% of the Group’s employees are based in the US.
o As announced at Globo’s Capital Markets Day on 19 June 2014 (http://www.globoplc.com/en-GB/media-coverage/?newsid=1331),Globo’s Founder and CEO, Costis Papadimitrakopoulos is relocating to Palo Alto to oversee the Group’s development in this region
Globo Technologies S.A.
Globo Technologies S.A., the e-business and software service, in which the Group retains a 49% interest as an associate entity, continues to grow strongly following divestment from the Group. Its progress is underpinned by significant contract wins and demand for its IT solutions. The current contracted project pipeline exceeds €17 million of private and public sector work, and there is also a strong pipeline of tenders and RFPs.
The Group has received the third instalment of €775,054 from the acquiring entity (GMBO Holdings Ltd, previously Zipersi Consulting Ltd), comprising €500,000 of principal and €275,054 in interest due, in respect of the Group’s divestment of 51% of Globo Technologies S.A., the e-business and software service, which was completed on 3 December 2012. This third instalment was received on 30 June 2014 and maintains the schedule of payments which is due for completion in December 2016. To date, the Group has received €2 million (out of €11 million) of principal consideration and €783,205 in interest, for the sale of 51% of Globo Technologies S.A., in line with the payment schedule.
Globo’s CEO, Costis Papadimitrakopoulos commented:
“During the first half of 2014 we have seen continued growth and substantial progress in building our business across geographies and technologies in the enterprise mobility market. The Group continued to deliver strong results and good free cash flow during the period.
We remain confident about our future prospects. In particular, the successful acquisition of the services division of Sourcebits Inc., allows us to increase our exposure to the Mobile Application Development Platform market for enterprise customers.”
The Group expects to announce its interim results during September 2014.
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
Mike Jeremy, IRO
RBC Capital Markets
(Nominated Adviser & Broker)
Stephen Foss or Pierre Schreuder
Simon Bridges or Emma Gabriel
Chris Blundell or Claire Boszko
About Globo plc
Globo plc is a global provider of complete enterprise mobility solutions and Software-as-a-Service (“SaaS”). Our GO!Enterprise (EMM) and GO!AppZone (MADP) offerings help businesses expand their engagement with employees and customers through the mobile channel via a secure and extensible environment that runs on all smart devices. The Group operates internationally through subsidiaries and offices in US, UK, Europe, Middle East and South East Asia. Globo was recognised in the 2014 Gartner Enterprise Mobility Management Magic Quadrant report (http://www.globoplc.com/en-GB/gartner-magic-quadrant-for-enterprise-mobility-management-2014)
For more information visit www.globoplc.com.