28th Feb 2008 07:01
Spiritel PLC28 February 2008 28 February 2008 SPIRITEL PLC ("Spiritel" or "the Company") TRADING UPDATE Spiritel plc, (AIM:STP), the business communications service provider, todayissues an update on current trading for the year to 30 April 2008. •Full year revenue expected to be not less than £15.8m (2007: £13.6m) •Second half underlying operating profitability more than double first half performance The Company is pleased to report that revenue for the second half of the currentyear to 30 April 2008 is expected to be over 30% ahead of the first half, andnot less than £15.8m (2007:£13.6m) for the full year. Second half underlyingoperating profitability is forecast to be substantially ahead of previousmanagement expectations and at least double the level of earnings recentlyreported in the interim results to 31 October 2007. The recent improvement in financial performance build further upon the return tounderlying operating profitability reported in the interim statement and is theresult of a strong third quarter performance which is expected to continue tothe end of the financial year and beyond. The increased revenue reflects thefact that over the past nine months Spiritel has won a number of new contractsand recorded several successes in cross selling its expanded range of productsand services to the enlarged customer base. The Company is also pleased to report that tdotcom, acquired in October 2007, isoutperforming initial expectations. Its rapid integration into Spiritel Businesshas led to the delivery of significant synergies, including cost savings andsubstantial revenue and margin increases. Forecast revenue and profitabilityfrom tdotcom, which has now been fully rebranded as Spiritel Business, issubstantially ahead of pre-acquisition performance. The new management team has worked consistently during this financial year tobuild on its successful track record of acquisitions to create a stronger,broader base from which to deliver value to shareholders and new products andservices to the growing customer base. This update on improved trading performance follows the recent announcement onbalance sheet restructure. Subject to EGM, the proposed conversion rights forPenta Capital's loan facilities and preference shares will save the Company anannual interest charge of £800,000 which will result in substantially improvedprofit before tax performance going forward. Commenting on the update, Alastair Mills, CEO said: "Our interim resultsdemonstrated the progress that the Company has achieved in its turnaroundprocess, both operationally and financially. Our success in delivering a returnto operating profitability and increased earnings visibility has beensignificantly advanced by the earnings enhancing acquisitions which have beenfully integrated into the Group structure. This is now being evidenced by theenhanced performance during the second half of the year" He added: "Our successful and proven business model is now delivering tangibleimprovements to the Company which will ensure long term shareholder value. Weexpect trading in the fourth quarter to build on our strong first nine monthsand bring the financial year to a very encouraging conclusion." For further information please visit www.spiritelplc.com or contact: Spiritel plc Tavistock Communications Daniel Stewart & Co.Alastair Mills Simon Hudson Simon LeathersChief Executive Clemmie Carr Stewart DickTel: 020 7160 0100 Tel: 020 7920 3150 Tel. 020 7776 6550 Notes to Editors Spiritel is a business communications group which seeks to take advantage of theopportunities created by rapidly changing telecoms markets in the UK as themigration to Internet Protocol (IP) based services accelerates. The Group is aconsolidator of the highly fragmented UK telecoms reseller market and aims tobuild a substantial customer base and scale through selective acquisitions. Weare organised into two divisions, Spiritel Technologies - focused on ourinfrastructure and IP products and services - and Spiritel Business, whichprovides our customer services. Today, the Group offers a broad range of voice and data communications productsand services to a customer base of small and medium sized enterprises and anincreasing number of larger national organisations. We are a leader in theprovision of new, but proven, Voice over IP (VoIP) solutions that are firmlybased on the old-fashioned service values, which run throughout the Group. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
STP.L