1 Dec 2022 07:00
1 December 2022
Pelatro Plc
("Pelatro", the "Company" or the "Group")
Trading update
Pelatro Plc (AIM: PTRO), the Customer Engagement Hub software specialist for enterprises, announces the following update to trading for the year ending 31 December 2022.
With a significant proportion of the Group's revenues now denominated in Indian Rupees ("INR") rather than US Dollars ("USD"), the Group is exposed to currency fluctuations on revenue as well as costs. The continuing weakening of INR v. USD is therefore expected to result in a shortfall against management expectations for INR-denominated revenue on translation to USD. Rising interest rates globally have also negatively impacted the present value of some contracts under the Group's revenue recognition policy (though not the quantum or timing of the cash amounts due), and certain other income (notably change requests) which was expected to be recognised this year will now be recognised in Q1 2023. The overall impact of these factors is likely to be in the order of $0.7-0.8m. Currency movements will also be reflected in costs, and hence the impact on profitability, whilst still overall negative, will be less marked but is still expected to result in EBITDA for the year falling slightly below current market expectations.
The Group has won a number of recurring revenue contracts in the year; however, a small number of customers have indicated that they may wish to transfer to a license model, reflecting their particular "capex v. opex" budget requirements in changing economic conditions. The cash payment structure for such license agreements is likely to be similar to that which would have accrued under recurring revenue contracts, however, the revenue for a license will be recognised largely in the year of agreement. Accordingly the Group is likely to close the year with just under $6m in ARR.
For further information contact:
Pelatro Plc | |
Subash Menon, Managing Director | c/o finnCap |
Nic Hellyer, Chief Financial Officer | |
| |
finnCap Limited (Nominated Adviser and joint broker) | +44 (0)20 7220 0500 |
Carl Holmes/Milesh Hindocha (Corporate Finance) | |
Dowgate Capital Limited (joint broker) | +44 (0)20 3903 7715 |
Stephen Norcross |
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.
Notes to editors
The Pelatro Group was founded in March 2013 by Subash Menon and Sudeesh Yezhuvath with the objective of offering specialised, enterprise class software solutions for customer engagement principally to telcos who face a series of challenges including market maturity, saturation and customer churn.
Pelatro provides its "mViva" platform for use by customers in B2C and B2B applications, and is well positioned in the Customer Engagement space. Our technology orchestrates the digital journey of the customers of the telcos through contextual, relevant and real time offers and loyalty programs across multiple channels including websites, social media, apps and others.
For more information about Pelatro, visit www.pelatro.com