SimiGon Limited Trading update (0345U)
31 March 2021 - 5:00PM
UK Regulatory
TIDMSIM
RNS Number : 0345U
SimiGon Limited
31 March 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
SimiGon Ltd
("SimiGon" or the "Company")
Trading update
SimiGon Limited (LSE: SIM), a global leader in providing
simulation training solutions, provides the following trading
update on an unaudited basis in relation to the year ended 31
December 2020 and ahead of announcing its audited final results in
late April 2021.
The Company is pleased to report that the second half of the
financial year is expected to be stronger than the first and the
Company expects this improving trend to continue as the global
economy opens up and the vaccine roll-out continues. Revenues for
the second half were 39% higher as compared to the first, and the
Company's net adjusted loss for the second half was 29% lower than
the first.
The Company expects to report revenue of approximately $3.22
million (2019: $4.88 million) and net adjusted loss of
approximately $1.83 million (2019: net adjusted loss of $1.14
million) for the financial year as a whole. Whilst performance has
predictably been lower as compared to the previous financial year
as project delivery and expected new business wins have slowed in
the face of the pandemic and associated restrictions, the Company
is pleased with the financial resilience during the second half of
year 2020.
The Company has continued to invest in R&D and marketing to
ensure that the Company is able to capitalize on the market
opportunities during the expected economic rebound.
The Company's balance sheet remains strong with approximately $5
million of cash and approximately $0.9 million of account
receivables as at 31 December 2020 (of which approximately $0.5
million have subsequently been received).
The Company has no update to provide with regard to the ongoing
litigation situation as described on 25 September 2020
announcement.
* net adjusted loss is calculated based on the expected net loss
excluding other income, financial income or expenses, depreciation
and amortization and share based compensation.
Ami Vizer, SimiGon's Chief Executive Officer and Executive
Chairman, commented : "Despite the fact that SimiGon's core
business supporting military aircrew training through direct
Government contract and subcontracts in 2020 has been adversely
affected by the COVID-19 pandemic, delaying numerous expected
contracts, we have continued to work through the challenges,
meeting programme deliveries, receiving awards for additional
programs while improving revenue during the second half of the
year.
We are currently encouraged by the changes in the simulation and
training environment, where ongoing programs that were put on hold
due COVID-19 affect are regenerated and new programs that have been
postponed are back on the agenda. Given that the ongoing R&D
efforts in XR, maintenance training and data analytics are creating
significant future growth potential together with SimiGon's
strategic programs and existing strong long-term relationships, we
are confident in the longer-term prospects for the business".
Enquiries:
SimiGon Ltd
Ami Vizer, Chief Executive Officer and Executive
Chairman +1 (407) 951 5548
Efi Manea, Chief Financial Officer
finnCap (NOMAD & Broker) +44 (0) 20 7220 0500
Henrik Persson/ Matthew Radley
About SimiGon
SimiGon (AIM: SIM) is a leading developer and supplier of
distributed simulation solutions for defence and civilian
applications. SimiGon is the creator of SIMbox, a leading PC-based
platform for creating, managing and deploying simulation-based
content across multiple domains. Through its off the-shelf training
solutions for demanding high-skill occupations, SimiGon provides
diverse organizations with faster and more cost-effective training.
SimiGon's growing client base includes blue-chip training and
simulation systems providers as well as air forces and commercial
airlines worldwide. Founded in 1998, SimiGon maintains offices in
Israel and the United States.
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