KLBT.L Regulatory News (KLBT)

24 January 2017

Kalibrate Technologies plc

("Kalibrate" or the "Group")

Trading Update

Kalibrate Technologies plc (AIM: KLBT), the provider of strategy and technology services to the global fuel and convenience retail industry, provides the following update on trading for the six months ended 31 December 2016.

Revenue and EBITDA in this first half period have been impacted by adverse foreign exchange movements, coupled with delays to the signing of certain new contracts and the commencement of certain backlog projects. A number of these contracts and backlog projects are now expected to close and commence in the second half of the current financial year.

As a result, the Group now expects its revenue and EBITDA for the current financial year to be materially lower than market expectations with first half revenues of approximately $14.0m (H1 2016: $15.9m) and EBITDA of approximately £0.1m (H1 2016: $1.4m).

Going into the second half contracted year to date revenue is $26 million (which includes the revenue of $14.0m recognised in H1) and the Group enters the second half of the financial year with a strong pipeline. However the range of outcomes for the full year will depend on the closing of further business the timing of which is difficult to predict. The Board has therefore taken prudent action to reduce the Group's cost base in order to protect profitability and cash flow. The balance sheet remains robust, with a net cash balance standing at $3.1m at 31 December 2016, up $0.7m from 30 June 2016.

During the period, Kalibrate has continued to enjoy encouraging sales success in its core markets, particularly for newer strategic product offerings. In December, the Group signed the first contract for its new Merchandising Pricing and Promotion offering - which aims to increase the profitability of in-store sales - with Ricker's, the leading fuel and convenience brand in Indianapolis, USA. The Group is also making encouraging progress with its planned B2B/Wholesale Pricing proposition, which remains on track for launch in the summer of 2017.

Kalibrate also continues to push ahead with its strategy to invest in sales growth in its Rest of the World region. Progress here has been slower than anticipated, with a large portion of the delayed contracts located in these regions. The Group continues to believe in the long term potential for growth in these markets.

Kalibrate Technologies President and CEO, Bob Stein, commented:

"The key factor to today's update is timing. Our core business is stable, cash generative and profitable and I believe the Group's strategy to drive growth in emerging markets and with new offerings, including mechanising and B2B pricing, remains right. As we work through the current delays to new contracts and the commencement of new work we have already signed, we will continue to move toward a more secure, better quality earnings stream driven by the opportunities open to us."

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About Kalibrate

For over 20 years, Kalibrate (LSE: KLBT) has advised fuel and convenience retailers throughout the world on how to be best-in-class operators in the fast changing marketplace. Kalibrate's global footprint and local presence are the result of a merger between two market leaders: KSS Fuels, the forerunner in fuel pricing automation, and MPSI, recognized leaders of retail location intelligence. Clients gain fuller visibility, truer insight and more effective control over what matters most-what Kalibrate calls Your Adaptive Edge™.

Headquartered in Manchester, United Kingdom and Florham Park, New Jersey, Kalibrate has centers of excellence in Mumbai, India; Tulsa, Oklahoma; and Melbourne, Australia as well as offices in 10 other countries. For more information, visit kalibrate.com.