15 Feb 2016 07:00
15 February 2016
Coms plc
(the "Company" or the "Group")
Trading update
Trading update
Coms plc (AIM:COMS) the leading provider of Infrastructure and Smart Building solutions is pleased to announce that Group EBITDA (after central costs) from continuing operations for the financial year ended January 2016 is positive and will be ahead of management expectations. This has primarily been driven by continued robust trading within the core operating division, Redstone, where both revenue and operating profit have been significantly ahead of the prior year.
As reported on 27 January 2016, the Group has resolved the vast majority of legacy issues that were inherited by the Board and has focused its efforts on developing the Group's core Redstone business, which has market-leading product offerings in Infrastructure and Smart Buildings. Since the disposal of the Telecoms business, Redstone has benefited significantly from the Board's focus and the Group's increased financial stability. The Group enters the new financial year with a new and experienced executive management team in place and with a sales pipeline at its highest for 6 months.
The Company finished the year with a net cash balance of c.£1.0 million, which has been achieved through stronger than expected cash generation within Redstone.
Appointment of joint broker
The Company also announces the appointment of Whitman Howard Limited as joint broker, effective immediately.
Mark Braund, CEO of Coms plc, commented:
"I am delighted to report in my first trading update as CEO that the operating business of the Group is in good health following a difficult time earlier last year. Since the disposal of the heavily loss-making Telecoms business in May 2015, we have successfully strengthened the balance sheet and reduced overheads. We have also continued to develop our core Redstone business, through the investment of further capability in Smart Building technology, including in-building wireless, cellular and work space management solutions, all of which is beginning to bear fruit.
On behalf of the Board, I wish to thank all of our colleagues for their commitment and dedication in helping achieve this significant turnaround. I would also like to express thanks to the Chairman, Frank Beechinor, and the non-executive directors for their exceptional contribution, stepping in to run the Company in difficult circumstances in March 2015.
We now look forward to the coming financial year from a position of strength and with a view to restoring significant shareholder value through a combination of organic growth and strategic acquisitions."
-Ends-
For further information, please contact:
Coms plc
Mark Braund (CEO) +44 (0) 207 886 2976
Panmure Gordon & Co +44 (0) 207 886 2500
(Nominated Adviser and Joint Broker)
Karri Vuori or Mark Taylor
Whitman Howard Limited +44 (0) 207 659 1234
(Joint Broker)
Nick Lovering