Trading Update (3935W)
30 January 2012 - 11:31PM
UK Regulatory
TIDMTEL
RNS Number : 3935W
Teliti International Ltd
30 January 2012
30 January 2012
Teliti International Ltd.
("Teliti" or the "Company")
Trading Update
Teliti International Ltd (AIM: TEL), the datacentre and IT
business, provides the following update on trading following its
admission to AIM on 3 November 2011 ("Admission").
Datacentre
The Company has focused primarily on the completion of its
state-of-the-art purpose-built datacentre ("the Datacentre"), which
is located on the outskirts of Kuala Lumpur. At 120,000 sq ft of
net lettable area, it will be the largest single-building facility
of its kind in Southeast Asia.
The earthworks and construction of the substructure were
finished during the first half of 2011 as planned. Work on the
superstructure is nearing completion and the installation of
equipment began during this month. However, due to the delay in the
delivery and receipt of key equipment (being the generator sets
from Europe and chiller equipment), it is now expected that the
initial 45,000 sq ft of net lettable area will be operational from
July 2012, a delay from the original expectation that operations
would commence in April 2012.
Demand for space in the new Datacentre has been unaffected by
this delay and Teliti currently has LOIs for approximately 62% of
the initial 45,000 sq ft. Coupled with further LOIs, the Company
expects to convert these LOIs to letters of award from end of March
2012 onwards, which would mean the Company exceeding its target of
pre-letting 40% of this space before opening.
When marketing the Datacentre, Teliti has encountered particular
- and increasing - demand for cloud computing services. As a
result, the Company has shifted some of its focus to providing
these services alongside co-location. Teliti is in the process of
equipping its Customer Experience Centre ("CEC") to offer cloud
computing services, which will also be incorporated into the new
Datacentre. As such, the cloud computing offering is progressing
ahead of management's expectations.
The CEC was established as a demonstration centre to provide
proof of concept to potential customers by showcasing the equipment
and the Company's models for future datacentres. To help compensate
for the delay in the Datacentre and to begin to satisfy the demand
for the Datacentre and cloud computing services, Teliti has
converted the CEC to a fully-operational centre. The CEC is
comprised of 1,000 sq ft, of which 386 sq ft is currently being let
for co-location services. The Company believes that the CEC will
generate additional revenue once the cloud computing offering
commences.
The Directors believe that whereas such a delay would ordinarily
have resulted in a shortfall of revenue for the year ending 30
September 2012, they expect to offset the entire potential
shortfall from the increased demand since Admission from potential
customers wishing to rent a further 9,000sq ft of space in the
Datacentre and from the acceleration of the cloud computing
offering. As a result, the Company expects to meet market
expectations for the full year ending 30 September 2012.
Solutions and Services
Since Admission, the Teliti Solutions and Teliti Services
subsidiaries have remained active in winning new contracts and
implementing existing projects. Recent significant contract wins
include a three-year project for Pertubuhan Keselamatan Sosial
(PERKESO), the Malaysian government's department of social
security, to supply server units and maintenance for disaster
recovery facilities. As previously stated, the requirement for
disaster recovery facilities has been identified by the Company as
a key growth driver. In December 2011, Teliti Services was awarded
a contract by Integrasi Naluri Sdn Bhd, a Malaysian
telecommunications company, to provide a two-year project for the
conservation and digitalisation of archives for the Malaysian
National Archives, part of Malaysia's Ministry of Information,
Communications and Culture.
In addition, the Accountant General of Malaysia's Government has
awarded a two-year extension contract for the maintenance of
Financial Management and Accounting System ("GFMAS") to be carried
out by Teliti Solutions and Teliti Services. The GFMAS is an
application solution that enables the Accountant General to
interact with its stakeholders with a standardised workflow, single
point of entry and integrated database - and, as such, provides a
common view of the entire government accounting operations. The
scope of the contract includes software renewal maintenance and
application support, consultancy services to maintain the GFMAS in
several application areas and preventive and remedial maintenance
of hardware.
Commenting on the developments since Admission, Hj Mohamed Nasir
Abdul Majid, the Company's Chief Executive Officer, said:
"Whilst we are disappointed by the delay in the completion of
the new Datacentre, we are pleased in the way we will offset the
possibility of any shortfall as a result of better than expected
demand for its services and the letters of intent that have been
signed recently. Teliti Solutions and Services have made a good
start to the financial year and this, coupled with the demand for
higher value cloud services, will help to deliver revenues in line
with market expectations."
Further details will be provided in the Company's full year
results statement, which will be announced in March 2012.
Enquiries
Teliti International Ltd
--------------------------------------- --------------------
Hj Mohamed Nasir Abdul Majid, Chief
Executive Officer
Rosmida Din, Chief Financial Officer +603 7873 7733
--------------------------------------- --------------------
Daniel Stewart and Company plc
--------------------------------------- --------------------
Antony Legge, James Felix +44 (0)20 7776 6550
--------------------------------------- --------------------
Luther Pendragon
--------------------------------------- --------------------
Harry Chathli, Claire Norbury, Alexis
Gore +44 (0)20 7618 9100
--------------------------------------- --------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTEAAFEDANAEFF
Teliti (LSE:TEL)
Historical Stock Chart
From Jan 2025 to Feb 2025
Teliti (LSE:TEL)
Historical Stock Chart
From Feb 2024 to Feb 2025
