Pre-AGM Trading StatementJune 30, 2010
FOR IMMEDIATE RELEASE
30 JUNE 2010
PRE-AGM TRADING UPDATE
Globo plc (“Globo”, the “Group” or the “Company”; LSE-AIM: GBO), the international IT, mobile solutions and SaaS provider, today provides a trading update ahead of its Annual General Meeting which is being held at 12:00 noon today.
Trading for the first half of the year ended today has been in line with the Group’s expectations with revenue ahead of the comparable period in 2009. The Group is focused on expanding the international mobile business, driven by its CitronGO! and GO!Social ‘open cloud’ mobile service offering. Despite the difficult economic conditions, good progress has been made in all of the Group’s business segments particularly with the private sector and Mobile Network Operators (MNOs).
The launch of CitronGO! and increasing internationalisation of the business are contributing positively, as expected, to contract wins and revenue growth. CitronGO!’s first contract was signed in January 2010, with an MNO based in South East Asia with 85 million subscribers, This was followed in May by new contracts from a South East European MNO, and from an MNO in Africa for a large SMS campaign.
Growth in demand for Globo’s Mobile offering, and the potential to increase recurring revenues, is accelerating with the rapidly rising use of Mobile Internet messaging and Social Networking.
The Company has today announced that it has signed a contract with a second MNO from South East Europe and has signed a letter of intent with an MNO operating in five Western European countries. In addition, further positive discussions are taking place, with other MNOs about potential opportunities for the CitronGO! platform.
In its traditional markets, the Group continues to make good progress following the introduction of an enhanced SaaS offering which has resulted in a number of new private sector projects, primarily for the SME market segment, through its Profitel division.
The Group’s current forward order book for project delivery during 2010 remains strong at approximately €4.2 million. This is further strengthened by a solid recurring revenue stream related to Mobile, SaaS and WiFi offerings that continue to increase year on year. Looking ahead, the EU Fourth Community Support Framework (2007-2013), has already started and there are already several tenders; supporting public and private investment in IT infrastructure and services, as well as work commencing following contract wins, which offers additional opportunities within our traditional markets.
In May 2010 we announced that we had raised £652,000 via a share placing to continue our international expansion. Cash collections have improved as most of the revenue generated this year has been secured in the private sector. Outstanding receivables from the public sector have been reduced by €1.9 million since the end of 2009 and we expect that the remaining €3.57 million will be paid within the year. However the delay in more recent public sector payments, caused by the financing issues of the Greek economy, has been longer than anticipated and, as a result, the balance due has not been reduced in the first half as expected. Net debt at 26 June 2010 was €10.8 million compared to €9.9 million at 31 December 2009.
Globo’s non-executive Chairman, Brett Miller commented:
“The success achieved so far with CitronGO!, which will contribute to revenue and profit in 2010, reflects the substantial investment completed during 2009 and management’s strategic focus on the growing international mobile applications market. This is supported by continuing progress in Globo’s core business. Whilst challenges undoubtedly remain, we are confident that we have a solid platform for profitable growth in 2010 and beyond.”
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
NCB Stockbrokers Limited (Nomad)
Christopher Caldwell or Barclay Clibborn
Astaire Securities Plc (Joint Broker)
Daniel Stewart & Company Plc (Joint Broker)
Simon Bloomfield or Andy Harris