Escher Group Holdings PLC Trading Update (3806W)
November 14 2017 - 2:01AM
UK Regulatory
TIDMESCH
RNS Number : 3806W
Escher Group Holdings PLC
14 November 2017
14 November 2017
Escher Group Holdings plc
Trading update
Escher Group Holdings plc (AIM: ESCH, "Escher" or "the Group"),
a world leading provider of outsourced, point of service software
for use in the worldwide postal, retail and financial industries,
announces that the Group will not close the additional licence
sales that it had expected in H2 2017 due to the postponement of
major contracts.
As a result, Group revenues are now expected to be approximately
US$18m for the year to 31 December 2017 with licence revenues,
which have a high margin, materially lower than expectations.
The adjusted EBITDA*, excluding exceptional items, is expected
to be approximately US$2.7m for the year to 31 December 2017. As at
31 December 2017, the Group expects to have a neutral net debt/cash
position.
Escher continues to manage its fixed-cost base in order to
remain profitable, even in the absence of major one-off licence
sales. The 2017 exceptional restructuring costs incurred are
expected to be similar to those in 2016 at US$0.3m.
Liam Church, Escher Chief Executive said:
"We are disappointed with the postponement of licence sales,
which we had anticipated falling in 2017. The volatility in
revenues and earnings caused by the timing of these licence sales
remains a characteristic of our core Postal activity."
* Operating profit before, depreciation, amortisation,
share-based payments and exceptional items.
Enquiries:
Escher www.eschergroupholdings.com +353 (0)1 254 5400
Liam Church, Chief Executive
Officer
Clem Garvey, Chief Financial
Officer
Fionnuala Higgins, Chief Commercial
Officer
+44 (0)20 7886
Panmure Gordon 2500
Andrew Godber / Alina Vaskina,
Corporate Finance
Erik Anderson, Corporate Broking
+44 (0)20 7457
Instinctif Partners 2077
Adrian Duffield / Chris Birt
This information is provided by RNS
The company news service from the London Stock Exchange
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