Pelatro Plc (AIM: PTRO), the global telecom Multichannel Marketing Hub software specialist, will hold its Annual General Meeting at the offices of finnCap at 60 New Broad Street, London EC2M 1JJ at 12 noon today.
At the meeting, Richard Day, Non-Executive Chairman, will make the following statement:
“Since last year’s AGM, Pelatro has been firmly focused on its key performance metrics, namely profitably growing our customer base, cross-selling new products to existing customers, increasing repeating revenue and entering new geographic territories.
I am therefore pleased to report we have made considerable operational and financial progress and tripled the number of customers to 18 since the beginning of 2018. This progress is in line with management’s expectations and will continue to be driven by new contracts and cross-selling opportunities. Notable cross-selling successes to date include Grameenphone in Bangladesh and Tele2 in Kazakhstan, with Grameenphone now employing our Loyalty Management Solution and Tele2 employing our Data Monetisation Platform in addition to the Contextual Marketing Solution. More recently we have been selected by a large telco in Asia to implement our Contextual Marketing Platform.
The Company continues to focus on entering new geographies and has recently employed an experienced sales person dedicated to Latin America, which the Company views as a key geographic focus and substantial opportunity. In addition, we have continued to build both repeating and recurring revenue, comprising gain share income, change requests, support and managed services, which from the start of the year to the end of May was approximately $2.0m
The integration of certain assets of Danateq acquired in August 2018, is now complete, with considerable progress being made selling the acquired products to both new and existing customers. Importantly, due to the revenue recognition of certain acquired pipeline contracts falling towards the end of 2019, it is unlikely that the earn out payment will be due or payable for this first year. In addition, our working capital continues to improve with trade receivables at the end of May at $2.98m and cash of $1.53m as at 31st May 2019, in-line with management’s expectations.
Outlook
The Company has a strong pipeline of new business opportunities which we are well placed to win. Current revenue visibility for 2019 stands at $6.3m and the pipeline of medium-term opportunities is at around $16m. Given our growing revenues and profitability, the Board remains confident in its high growth strategy and that the Company continues to trade in-line with expectations.”
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