24 Jul 2012 07:00
FOR IMMEDIATE RELEASE | 24 July 2012 |
GLOBO PLC
Trading Update
Globo plc ("Globo", the "Group" or the "Company"; LSE-AIM: GBO), the international mobile solutions and SaaS provider, today provides a trading update for the 6 months ended 30 June 2012.
The Group is pleased to report that revenues for the period increased by 29 per cent in the first half of 2012 to approximately €25.2 million (6 months ended 30 June 2011: €19.6 million), ahead of the Board's expectations, with pre-tax profits expected to be substantially higher than for the same period of the last financial year. Mobile products and services contributed approximately 76 per cent of group revenues with the dominant growth driver being the continued success of the CitronGO! business and strong, accelerating demand for GO!Enterprise Server.
International revenues accounted for 68 per cent of Group revenues at approximately €17 million (6 months ended 30 June 2011: €7.6 million representing 39 per cent) underpinning management's confidence in Group prospects for the full year 2012.
This strong financial performance reflects Globo's continued successful expansion in the international mobile market, driven by the continuing growth of CitronGO! and revenues from GO!Enterprise Server which are exceeding market expectations with performance expected to accelerate further in the second half.
Enhanced operating cash flows and the recent equity placing have resulted in a net cash position of €12.3 million at 30 June 2012 (net cash position of €1.8 million at 30 June 2011), with total cash of €25.9 million at the end of the 6 month period.
In line with normal seasonality favouring the second half, the Group anticipates revenues and margins will continue to increase over the remainder of the year. Financial performance will also benefit from the start of the full commercial rollout of GO!Enterprise Server in the US market, and historic and further investment in product development will enable the launch of new products and services planned for the second half of 2012.
Globo's non-executive Chairman, Barry Ariko commented:
"During the first half of 2012, Globo has made substantial progress with expanding its international business which today accounts for the vast majority of group profits. The Group's dependence on its traditional Greek market is becoming far less material and we are making progress with our Greek divestment plans.
Globo is positioned at the cutting edge of the global mobile application industry. Our GO!Enterprise Server offering is serving the growing trend of "Bring Your Own Device" (BYOD) with demand for our products and services accelerating through the growth of Android, iPhone and Windows smartphones and tablets against the Blackberry devices which have dominated the traditional enterprise market for many years.
We believe that the Group's entry into the US market and the sales of GO!Enterprise Server will further accelerate Globo's growth through the second half of the year, traditionally our stronger trading period, leading to a strong trading performance for 2012 as a whole."
The Group expects to announce interim results in mid-September 2012.
END
Enquiries:
GLOBO PLC www.globoplc.comCostis Papadimitrakopoulos, CEO +44 207-378-8828Dimitris Gryparis, Finance Director
Daniel Stewart & Company Plc(Nominated Adviser and Broker)Noelle Greenaway, Director, Corporate Finance +44 20-7776-6550Martin Lampshire, Head of Corporate Broking
Bankside +44 20-7367-8888Simon Bloomfield or James Irvine-Fortescue