Contract Win & Trading Update

RNS Number : 2860N

Pelatro PLC

29 January 2021

 

29 January 2021

Pelatro Plc

("Pelatro" or the "Group")

Contract Win and Trading Update

Pelatro Plc (AIM: PTRO), the telecom Customer Engagement Hub software specialist, is pleased to announce a new contract win and to provide an update on trading.

Contract Win and New Business

Our mViva platform has been chosen by an Asian telco, which is part of a large global group, for campaign management operations. The contract is recurring in nature and includes a variety of services as well as the software product itself. Over the three-year term of the contract, revenue is expected to be between $1m and $1.2m, depending on the customer's take up of additional services currently under discussion.

Further, we have been chosen to provide advanced analytics using mViva by one of our existing customers. This highly collaborative engagement between Pelatro and this large telco group will see us developing advanced analytical capabilities for four operating companies in different countries of that telco group, and the capabilities developed will strengthen the mViva platform significantly, thereby making our offering even more attractive to telcos.

In addition to the above, so far in January 2021 we have received various purchase orders for change requests, new modules etc. with a total value of around $600,000.

COVID 19

Following the impact on the business in H2 last year, due to some employees and/or their close relatives falling sick, operations have stabilised and are now beginning to progress well with respect to development, implementation and support. In particular, it is pleasing to note that the large managed services contract announced in December 2019 has been implemented in line with plan.

Like many businesses, the sales process has been affected due to the inability to travel and meet in person but this is being addressed through new engagements with various partners to ensure local presence. We are pleased to note that such engagements are starting to bear fruit. In addition, the business has been investing in other sales and marketing channels and has also recently contracted with a new sales person to cover the Middle East and African regions.

Trading Update and   Outlook

As is well known, over the past two years, we have been transforming our business from one-off revenues through the granting of new licences to longer term recurring revenues. Such a change in business model impacted revenue growth, as one-off license revenue was replaced by revenues spread over several years. This effect, which was fully expected, was reflected in our revenues for the subsequent reporting periods. However, this re-positioning phase is now behind us and we look forward to a return to healthy revenue growth in 2021 and beyond, with much more revenue visibility and dependable revenue streams coming through. The progress achieved on the Annual Recurring Revenue (ARR) front is particularly encouraging as it has prepared a strong foundation for the Group to build on. As can be seen from the table below, ARR has been growing consistently, despite COVID 19.

Date	Jan 18	Jan 19	Jan 20	Jan 21
ARR run rate in US$m	0.0	1.5	4.0	5.4

On the back of this progress in ARR and the various contracts mentioned above, we currently already have contracts in hand representing 2021 revenue of around $5.6m, giving us every confidence of further growth and a successful roll-out of revenues, thereby resulting in a profitable year.

Results for the year ended 31 December 2020

Results for FY20 are subject to audit but are expected to be in line with expectations, with modestly positive adjusted EBITDA. Gross cash at the year end was approximately $1.8m and trade receivables just under $3.7m. 

We anticipate releasing our results for the year ended 31^st December 2020 in late March/early April 2021, although this may be subject to change given the disruption caused by local lockdowns.

For further information contact:

Pelatro Plc
Subash Menon, Managing Director
Nic Hellyer, Finance Director	c/o Cenkos
Cenkos Securities plc (Nominated Adviser and Broker)	[phone]
Stephen Keys / Mark Connelly (Corporate Finance)
Michael Johnson (Sales)

This announcement contains inside information.

Notes to editors

The Pelatro Group was founded in March 2013 by Subash Menon and Sudeesh Yezhuvath with the objective of offering specialised, enterprise class software solutions for customer engagement principally to telcos who face a series of challenges including market maturity, saturation and customer churn.

Pelatro provides its "mViva" platform for use by customers in B2C and B2B applications, and is well positioned in the Customer Engagement space. Our technology orchestrates the digital journey of the customers of the telcos through contextual, relevant and real time offers and loyalty programs across multiple channels including websites, social media, apps and others.

For more information about Pelatro, visit www.pelatro.com

 

END

 

 

MSCBPMMTMTBTTAB