24th Jan 2022 10:28
(Alliance News) - Shares rose in Touchstar PLC on Monday as it said it is on-track to deliver a performance for 2021 that exceeds market expectations, and expects 2022 to deliver even stronger results.
Shares in the Manchester-based mobile data supplier were 16% higher at 90.00 pence on Monday morning in London.
For the year, Touchstar expects posttax profit to triple from the GBP87,000 posted in 2020, as the company continues to develop itself into a Software-as-a-service model. For 2021, recurring revenue accounted for 38% of total revenue, compared to 35% the prior year.
At the end of 2021, Touchstar had an order book of GBP646,000, up 36% from GBP475,000 the same date a year before.
Looking ahead, Touchstar said its prospects for 2022 are more positive and certain, with the rate of growth in earnings and revenue set to accelerate, while the current supply chain constraints remain manageable.
"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 in mobile applications," said Chair Ian Martin.
"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," Martin added.
Touchstar will post its annual results in late April.
By Dayo Laniyan; [email protected]
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