Pelatro Plc (LON:PTRO) CEO Subash Menon talks to DirectorsTalk about its results for the year end 31st Dec 2017. Subash talks us through the highlights, the significance of a $1.7m contract, markets and trends, the impact marketing and sales is having and what we can expect in terms of news flow over the coming months.
Financial highlights
· Revenue up c. 160% to $3.15 million (2016: $1.21 million)
· Pre-exceptional EBITDA* increased c. 300% to $2.00 million (2016: $498,000)
· Adjusted profit before tax $1.8 million (2016: $360,000); statutory profit before tax $1.10 million (2016: $360,000)
· Adjusted earnings per share** up 305% to 8.9¢ (2016: 2.2¢)
· Net cash as at 31 December 2017 $3.1 million (31 December 2016: $196,000)
* earnings before interest, tax, depreciation, amortisation and exceptional items
** based on pre-exceptional earnings after tax
Operational and corporate highlights
· Admission to AIM on 19 December 2017 and placing of 6.1 million new Ordinary Shares, raising gross proceeds of $5.1 million for the Company at a price of 62.5 pence per Ordinary Share
· Continued strong mViva customer progress in 2017 with 4 new customer wins and 1 new customer win since the year end
· Further expansion of customer base
· Increased investment in product innovation and sales and marketing
· Acquisition of the Software Development Centre in Bangalore to bring development and support fully in house
Post year end highlights
· Largest ever contract ($1.7 million revenue) won in Central Asia with subsidiary of Western European telco
· One new sales person appointed to cover North Africa and Central Europe
· Significant levels of change request work ongoing
· Identified pipeline of 20 opportunities
· c. 40% of year end receivables balance now paid
Richard Day, Non-executive Chairman of Pelatro commented: “2017 was a very good year for Pelatro. The successful IPO and continued progress against our strategy have delivered strong results. Demand for Pelatro’s product is robust and the environment for data analytics capability for Telcos remains attractive. The Group continues to deliver against its stated strategy and, with our recently announced contract new customer win, we are confident of at least meeting market expectations for 2018.”