Trading UpdateAugust 2, 2010
FOR IMMEDIATE RELEASE
MONDAY, 2 August 2010
Globo plc (“Globo”, the “Group” or the “Company”; LSE-AIM: GBO), the international IT, mobile solutions and SaaS provider, today provides a trading update for the 6 months ended 30 June 2010.
The Group is pleased to report that revenues for the period increased by 50.2 per cent on the first half of 2009 to €12.53 million (H1 2009: €8.34 million), ahead of the Board’s expectations, with pre-tax profits also substantially higher than the same period of last year.
This strong financial performance reflects Globo’s successful expansion into the international mobile market which contributed €1.1 million to revenues, representing 8.8 per cent of the Group total for the period, compared to €32,000, or 0.3 per cent of the Group total, in the first half of 2009.
The early success of Globo’s international business, driven by its CitronGO! and GO!Social ‘open cloud’ mobile service offering, has been achieved in a difficult economic environment and provides management with confidence in the Group’s international growth potential and its strategic focus on Mobile Network Operators (“MNOs”).
As the result of new contracts won by CitronGO! from MNOs in South East Asia, West and South East Europe, and Africa, with the service continuing to be deployed, Globo is increasing its customer base which management expects will make a significant contribution to revenues for the second half of the year.
Operating cash flows for the period were healthy despite the delays in settlement of public sector invoices, as previously announced. Since 30 June 2010, the Group has reduced public sector receivables by €430,000 and management expects that the remaining €3.14 million will be collected prior to the end of the year. Net debt at 30 June 2010 was €11.4 million (€9.9million as at 31 December 2009).
Globo’s non-executive Chairman, Brett Miller commented:
“During the first half of 2010, Globo made substantial further progress with its expansion into the international mobile market, as well as delivering the financial performance we promised. We are actively seeking to accelerate our international growth through partnerships with several Mobile Operators worldwide. We believe that our progress will continue through the second half of the year, traditionally our stronger trading period, and are confident about our prospects for the future.”
The Group expects to issue a full interim results statement for the 6 months ended 30 June 2010 in September.
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
NCB Stockbrokers Limited (Nomad)
Christopher Caldwell or Barclay Clibborn
Daniel Stewart & Company Plc (Joint Broker)
Astaire Securities Plc (Joint Broker)
Simon Bloomfield or Andy Harris