Telit Communications PLC Half year trading update (4587S)
July 09 2020 - 2:00AM
UK Regulatory
TIDMTCM
RNS Number : 4587S
Telit Communications PLC
09 July 2020
THE INFORMATION COMMUNICATED IN THIS ANNOUNCEMENT IS INSIDE
INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION
596/2014.
9 July 2020
Telit Communications PLC
Half year trading update
Telit Communications PLC (AIM: TCM "Telit" and "Group") a global
enabler of the Internet of Things (IoT), has published a trading
update for the first six months to 30 June 2020. The Group expects
to publish its interim results during August 2020.
The Group expects to report adjusted EBITDA and profit in cash
for the first half ahead of the comparative period (H1 2019:
adjusted EBITDA: $16.0 million; Profit in cash $2.6 million)
despite as, previously indicated, some slowing in customer demand
reflecting the impact of COVID-19. Revenues are expected to be
approximately $166.5 million (H1 2019: $180.3 million, excluding
revenue from the divested automotive business). Encouragingly, and
demonstrating the positive impact of the strategic refocusing
efforts carried out in 2019, IoT Connectivity and Platform Services
revenues grew by 11.8 per cent despite market conditions to $20.9
million (H1 2019: $18.7 million).
As at 30 June 2020, the Group's net cash position was $55.7
million (31 December 2019: $48.2 million) with an improved
collection of the receivable due from Titan. The Group is in a
robust financial position and continues to benefit from the
strategic changes implemented prior to COVID-19, as well as from
the cost reduction measures implemented early in the pandemic.
Although it is now likely that revenues for the full year will be
below those of the previous financial year (2019: $382.8 million,
excluding automotive revenues), the Group still expects to meet
board expectations for both Adjusted EBITDA and Profit in cash.
Paolo Dal Pino , Chief Executive Officer, commented:
"We are pleased we were able to improve our first-half result
and cash generation versus last year. Management reacted fast to
the crisis generated by the COVID-19 pandemic and delivered an
effective response to customer demand pressures by executing a
targeted programme of cost reductions and increased resilience
designed to protect our supply chain, strategic plans and financial
targets from material impact. Our bundling strategy, reflected in
the continued growth of our IoT Connectivity and Platform service
revenues, was a key positive achievement and reinforces the
transformation efforts made in recent years.
"The conclusion of the FCA investigation in June, with no
finding of any regulatory breaches, is a key milestone for the
Group and allows us to start a new chapter with strong financial,
operational and governance foundations. Telit is well placed to
navigate the current economic pressures and to capitalise on
emerging opportunities as markets recover."
Enquiries:
Telit Communications PLC Tel: +44 20 3289 3831
Paolo Dal Pino, Chief Executive Officer
Yariv Dafna, Finance Director & President
finnCap (Nomad and Broker) Tel: +44 20 7220 0500
Henrik Persson/Giles Rolls/Hannah Boros
(corporate finance)
Tim Redfern/Richard Chambers (ECM)
FinElk Tel: +44 20 7631 8618
Robin Haddrill/ Cornelia Schnepf Email: telit@finelk.eu
About Telit
Telit (AIM: TCM), is a global leader in Internet of Things (IoT)
enablement, with an extensive portfolio of wireless connectivity
modules, platforms and virtual cellular IoT operator services,
empowering hundreds of millions of connected 'things' to date, and
trusted by thousands of direct and indirect customers, globally.
With nearly two decades of IoT innovation experience, Telit
continues to redefine the boundaries of digital business, by
delivering secure, integrated end- to-end IoT solutions for many of
the world's largest brands, including enterprises, OEMs, system
integrators and service providers across all industries, enabling
their pursuit of enterprise digital transformation..
# # #
Copyright (c) 2020 Telit Communications PLC. All rights
reserved. Telit, Telit OneEdge and all associated logos are
trademarks of Telit Communications PLC in the United States and
other countries. Other names used herein may be trademarks of their
respective owners.
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END
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