1 Feb 2019 07:00
1 February 2019
Nasstar plc
("Nasstar", "Company" or "Group")
Trading Statement and Notice of Results
Nasstar (AIM: NASA), the provider of hosted managed and cloud computing services, is pleased to provide the following trading update for the financial year ended 31 December 2018.
Trading for the year closed out positively with revenues and adjusted EBITDA* expected to be, respectively, slightly ahead of and in line with management expectations. In addition, the Directors are pleased to report that the Group's net cash at 31 December 2018 was in line with management expectations at £1.5 million.
2018 was the second year of the "Nasstar 10-19" plan and saw further investment in key strategic areas designed to secure future long-term growth, recognise and deliver revenues more quickly, improve efficiencies and retain the Group's competitive edge in a fast-moving market. As a direct result of this initiative we are now better positioned than ever to deliver on projects of increasing complexity and size and very focussed on developing a sales pipeline of larger deals, as we reported in the 2018 interim results.
We were delighted therefore to secure in Q4 our first deal with a law firm in the top 50 of the UK's Legal 200 list with the winning of a three-year contract to deliver a fully managed public/private hybrid cloud solution. Nasstar will deliver a fully managed hosted desktop solution to all 850 users at the law firm over the course of a three-year term. Due to its size and complexity this project is expected to go live towards the end of Q4 2019 and to generate revenues of at least £3.1 million over its term, providing valuable underpinning to current 2020 expectations.
*Comprising earnings adjusted for interest, taxation, depreciation, amortisation, exceptional items and share based payments.
Notice of Results
As previously announced Nasstar has adopted IFRS 9, IFRS 15 and IFRS 16 from the start of the 2018 financial year and the results for the year ended 31 December 2018 reflecting this are expected to be announced on 29 April 2019.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
For further information, please contact:-
Nasstar plc +44 (0) 1952 225 000
Nigel Redwood, Chief Executive Officer
Niki Redwood, Finance Director
finnCap Limited (Nominated Adviser & Broker) +44 (0) 20 7220 0500
Julian Blunt, James Thompson (Corporate Finance)
Alice Lane (Corporate Broking)
IFC Advisory Limited (Financial PR & IR) +44 (0) 20 3934 6630
Tim Metcalfe
Miles Nolan
Zach Cohen
About Nasstar plc
Nasstar (www.nasstar.com) and its wholly owned operating businesses provide hosted managed and cloud computing services, integrating private and public clouds supplying a robust, secure and stable hosted Information Technology service to business customers. The Group provides a true end to end service for clients providing them with enhanced IT performance and greater cost control over their IT function. The Group owns its primary data centre, is head quartered in Telford with regional offices in Northampton, London and Bournemouth whilst 24 x 7 support is delivered from its Auckland office in New Zealand. Nasstar is an accredited Microsoft Gold Partner, is the 2016 Citrix Networking Partner of the Year and is certified to ISO 27001.
Nasstar specialises in building bespoke cloud hosted services to manage a client's entire application set, tailor made to suit specific industries, designing public, private and hybrid cloud solutions to meet the objectives of the client. The solution is a highly scalable service that provides benefits including "Anywhere Access" to computing; a standardised corporate solution that can be accessed globally in multiple languages; generating cost savings when compared to the traditional IT ownership model whilst replacing capital expenditure with a simple usage based payment model.
Nasstar (AIM: NASA) was founded in 1998, admitted to AIM in December 2005, acquired e-know.net Limited in a reverse takeover in January 2014, Kamanchi Limited in July 2014, VESK in October 2015 and Modrus Limited in September 2016.