Last checked at 24 Jan 2022 07:00
Touchstar plc
(the "Company", "Touchstar" or the "Group")
Full Year Trading Update for the year ending 31 December 2021
Profits and cash generation above prior expectation
Considerable strategic progress achieved in 2021
Focused strategy and strong financial position to enable accelerated growth in 2022
Touchstar plc (AIM: TST), suppliers of mobile data computing solutions and managed services to a variety of industrial sectors, is pleased to give the following trading update for the year ended 31 December 2021 ("FY21").
Trading Update and Financial Position
· The unaudited full year outcome for FY21 is above market expectations in terms of profitability and cash generation. The Board anticipates:
o profit after tax to be approximately 200% higher than FY20;
o EBITDA growth of over 20% compared to FY20;
o cash generation to be considerably stronger than expected;
o a year-end cash balance of £2.5m (31 December 2020:£1.9m); and
o an order book at year end of £646,000 (31 December 2020: £475,000).
Strategic Advancement in 2021
· Touchstars evolution to a SaaS model continues, this brings benefits from long term contracts and high levels of customer retention.
o Recurring revenue accounted for 38% of total revenue in 2021 (FY20: 35%)
o Rate of growth in recurring revenue of 14%
Current Trading and Outlook for 2022
· The Board has given a consistent message that it would be 2022 when the underlying growth rate in all the Group's businesses harmonise. The Board believes that:
o the prospects for the Group appear more positive and more certain than for a long time;
o the rate of growth in revenue and EBITDA will accelerate in 2022 driving further substantial improvement in financial performance;
o the growth in SaaS revenues is likely to outpace the Company's overall growth rate will the aim for recurring revenue moving towards 40% of total revenue by the end of FY22: and
o recent and continuing supply chain constraints appear manageable.
Ian Martin, Chairman, commented:
"Despite some difficult trading conditions in 2021, the management team has delivered on both the Company's strategic and financial objectives. Particularly pleasingly, Touchstar has made substantial progress in 2021 in transitioning its business to become a provider of proprietary SaaS (Software as a Service) in mobile applications.
"Whilst there will be challenges ahead in 2022, we are confident that we are well placed to capitalise on the forward momentum gained, using internally generated cash to accelerate our rate of growth, innovate our products, enhance our solutions, invest in our people, and become a better business."
Touchstar expects to report its final results for the year ended 31 December 2021 in late April 2022.
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For further information, please contact:
Touchstar plc | Ian Martin Mark Hardy | 0161 8745050 0161 874 5050 |
WH Ireland - Nominated Adviser and broker | Mike Coe/ Sarah Mather | 0207 220 1666 |
Information on Touchstar plc can be seen at: www.touchstarplc.com