3rd Feb 2009 07:00
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FOR IMMEDIATE RELEASE |
3 February 2009 |
Globo plc
2008 PERIOD END TRADING UPDATE
Globo plc ("Globo" or "the Group"; LSE-AIM: GBO), a leader in the Information and Communications Technology market in Greece and a SaaS (Software as a Service) solutions provider, today announces an update on trading for the year ended 31 December 2008, its first full year since Admission to AIM in December 2007, together with guidance for 2009.
Trading for the year was strong with revenue of over €17 million, an increase of around 60% on the previous year and ahead of consensus market expectations. Profit before tax is expected to show an increase of more than 35%, broadly in line with consensus market expectations, with operating cash flow increasing significantly to approximately €2.2 million. However, due to the global financial crisis overall cash flow has been affected by significant delays in payments by customers, in particular on completed government contracts, resulting in an increase in borrowings. The Group has adequate cash deposits and banking facilities for operational purposes.
Globo's performance during the year reflects progress across both the private and public sector segments of the business and across all products and services of the Group (namely e-business, digitalisation services, SaaS and WIFI networks), despite operating within a very difficult business environment.
Significant private sector contracts were completed during 2008 including the Onassis Cardiologic Surgical Center, Cosmote, the Lambrakis Foundation and the Panhellenic Organization for the Paraplegic and Disabled. Public sector projects were delivered successfully for the General State Archives, the Hellenic Parliament, the Ministry of Education and Religious Affairs, the Athens University of Economics and Business and Agricultural Bank of Greece.
Profitel, the SaaS unit of the Group, expanded significantly by adding new customers including Pfizer Hellas, Wilo Hellas, Naftomar Shipping & Trading and Goldenport Ship Management.
A key development for Globo during the second half year was the announcement of plans to enter the mobile applications market with its CitronGO! product. As part of this development, the Group announced recently that it has formed a new Globo Mobile business unit and acquired a 35% interest and full management control of ReachFurther Communications Limited ("ReachFurther") to create a new sales channel for CitronGO!. ReachFurther has established a strong position in the Greek market as a Value Added Service provider and aggregator of mobile entertainment and mobile marketing services with customers which include Vodafone, Wind and OTE in Greece, as well as Cyta in Cyprus.
Globo has started 2009 with several new and ongoing public and private sector projects including the Information Society of Greece, the Ministry of Mercantile Marine, the Ministry of Environment, Physical Planning and Public Works, the General Secretariat of National Statistical Service of Greece and the Prefecture of Messinia. Although it has a solid pipeline of new business, the Group recognises that at this early stage in the year, the many uncertainties that exist make it difficult to predict the outcome for 2009 with any accuracy. The Board considers that it is prudent to expect that revenue growth, while still significant, will be somewhat lower than previous expectations. Gross margins are likely to be affected by the more cost conscious environment however it is expected that a small growth in profits will be achieved in 2009.
Globo's non-executive Chairman, Brett Miller commented: "In our first full year as an AIM quoted company, we are pleased to have traded well despite a tough economic background. However, it is inevitable that the current global economic turmoil will affect our business although we remain confident that we will trade profitably in 2009. We expect to release the full year results in early April."
END
CONTACTS
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Globo plc |
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Costis Papadimitrakopoulos, Managing Director |
+30 210-646-6008 |
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Dimitris Gryparis, Finance Director |
+30 210-646-6008 |
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NCB Stockbrokers Limited (Nomad & Joint Broker) |
+44 20-7071-5200 |
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Christopher Caldwell or Jonathan Gray |
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Bankside |
+44 20-7367-8888 |
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Simon Bloomfield or Steve Liebmann |
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St Helen's Capital Plc (Joint Broker) |
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Ruari McGirr |
+44 20-7628-5582 |
About Globo
GLOBO plc was admitted to AIM in December 2007. Founded in 1997 by Konstantinos Papadimitrakopoulos and headquartered in Halandri (a suburb of Athens), Globo has established itself as one of the market leaders in the Greek ICT market. It provides e-business and telecom software products and related services to the private and governmental sectors in Greece as well as developing and operating broadband wired and wireless networks. It has developed to become one of the largest e-business software and SaaS. vendors in Greece. More recently, the Group has formed a new business unit, Globo Mobile, to deliver its mobile communications strategy. For further information please go to www.globoplc.com.
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