SIM.L Share News (SIM)

(Sharecast News) - Simulation training solutions provider Simigon said on Wednesday that the second half of the financial year was expected to be stronger than the first, an improving trend it anticipates continuing as the global economy opens up and Covid-19 vaccine roll-outs continue.
Simigon said revenues for the second half of 2020 were 39% higher when compared to the first, with its net adjusted loss contracting 29% half-on-half.

The AIM-listed group now expects to report full-year revenues of approximately $3.22m, down from $4.88m a year earlier, and a net adjusted loss of approximately $1.83m, a widening of the prior year's $1.14m annual loss.

While Simigon said its performance had "predictably been lower" as project delivery and expected new business wins slowed in the face of the pandemic and associated restrictions, the group also stated it was "pleased" with its "financial resilience" during the second half of 2020.

Simigon, which will report its audited final results in late April, stated its balance sheet remained "strong", with approximately $5.0m of cash and roughly $900,000 of account receivables as of 31 December, of which approximately $500,000 have subsequently been received.

Chief executive Ami Vizer said: "We are currently encouraged by the changes in the simulation and training environment, where ongoing programs that were put on hold due Covid-19 affect are regenerated and new programs that have been postponed are back on the agenda.

"Given that the ongoing R&D efforts in XR, maintenance training and data analytics are creating significant future growth potential together with SimiGon's strategic programs and existing strong long-term relationships, we are confident in the longer-term prospects for the business".

As of 1115 GMT, Simigon shares were down 2.26% at 5.62p.