16th Jun 2009 07:00
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FOR IMMEDIATE RELEASE |
16 June 2009 |
Globo plc
PRE-AGM 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 provides a trading update ahead of investor briefings, its Annual General Meeting which is being held at 11:00 am on Friday 19 June 2009 and the end of the first half trading period to 30 June 2009.
Trading in the first half year to date has been in line with the Group's expectations with revenue ahead of the comparable period in 2008. Despite the difficult economic conditions, good progress has been made in all of the Group's business segments including the private and public sectors.
During the year to date, emphasis has been placed on business development. This has resulted in a number of new public and private sector projects. Progress has also been made in developing the Group's SaaS offering, primarily for the SME market segment, through its Profitel division.
Following the commercial launch of the Group's CitronGO! mobile application in February 2009, the initial market reception has been very positive. Globo's 'go to market' strategy is focussed on developing strategic partnerships with mobile network operators ("MNOs"), internationally, in order to access their customer bases. Direct discussions are ongoing with several MNOs in different European countries. In addition, marketing and business development partnerships have been established in order to support existing negotiations with MNOs in Latin America, EMEA, Africa, India and China. In due course, the Group expects to be able to announce further progress in developing strategic partnerships with MNOs.
Following on from significant contracts signed in 2008, the Group's WiFi broadband internet connectivity activities have expanded successfully to include WiMax technologies. The outlook for this business segment is particularly good as major investment in WiFi and WiMax infrastructure is expected over the next two years, driven by Greek government and telecom operator initiatives. Opportunities exist for consolidation within the provision of wireless broadband infrastructure and services.
The Group's current forward order book for delivery during 2009 remains strong at approximately €6.7 million with a positive outcome from several public and private sector tenders expected during the following months. Looking ahead, preparations in our domestic market are under way for the EU Fourth Community Support Framework (2007-2013), which is expected to support public and private investment in IT infrastructure and services, thus underwriting prospects within the Greek market.
There have been improvements in cash collection during the half year to date with €5.2 million collected out of the €8.8 million invoiced and recognised under IAS 11 on public sector contracts which were due as at 31 December 2008. We expect further progress in debtor collections from the public sector before the end of the current half year. Net debt as at 12 June 2009 has reduced by €1.2 million to €8.64 million (€9.83 million as at 31 December 2008).
Globo's non-executive Chairman, Brett Miller commented: "We are pleased to be able to report that Globo continues to perform in line with our expectations despite the difficult economic conditions. Globo has established a well balanced portfolio of products and services which should form a sound basis for future expansion in domestic and international markets."
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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Steve Liebmann, Simon Bloomfield or Andy Harris |
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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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