(Alliance News) - Pelatro PLC on Wednesday said it expects its performance for 2020 to meet expectations, adding that the Covid-19 pandemic has not significantly hurt demand for its marketing software.
Pelatro said revenue visibility for 2020 has increased to USD5.0 million from USD4.1 million forecast in April and annualised recurring revenue to USD4.7 million, with the increase attributed to new contracts being awarded. For comparison, revenue for 2019 was USD6.7 million.
Pelatro said in 2020 it has built on its product offerings by developing several add-on modules, and has already launched seven such modules.
Looking ahead, the company said it intends to increase its investment in sales and marketing in existing emerging markets, such as Asia Pacific, Africa and Latin America, as well as new geographies such as Europe, Middle East and Central Asia. The focus will be on winning new managed services contracts.
Pelatro said it aims to to increase its current annualised recurring revenue of USD4.7 million to "low double digits", meaning above USD10 million, in the next two to three years.
"We remain optimistic about the prospects for the telecommunications industry. At the same time, Pelatro is increasingly cash generative, with clearer visibility on future income streams and our new product modules provide a strong foundation for our continued growth," it said.
Pelatro stock was trading 13% higher at 50.75 pence each on Wednesday morning in London, but 28% lower than at the start of the year.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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