Starcom PLC Trading Update (8863X)
27 February 2017 - 6:01PM
UK Regulatory
TIDMSTAR
RNS Number : 8863X
Starcom PLC
27 February 2017
27 February 2017
Starcom Plc
("Starcom" or the "Company")
Trading Update
Starcom (AIM: STAR), which specialises in the development of
wireless solutions for the remote tracking, monitoring and
protection of a variety of assets and people, is pleased to provide
shareholders with an update in respect of the results for the year
ended 31 December 2016, which are subject to final audit.
The Board expects turnover of not less than US$5.2m (FY 2015:
US$5.1m).
The growth in revenues from the new Watchlock Pro has been held
back due to delays in deliveries by Mul-T-Lok. An order of
US$200,000, originally planned for delivery in 2016, will now be
shipped and recognised in the 2017 financial year. The Company has
now addressed this problem to ensure that it can meet the demand in
a timely manner.
SAS revenues are expected to increase to US$1.7m during 2016,
compared to US$1.6m in 2015. This growth was below plan due to one
customer, who has so far connected only 1,500 Helios units out of
over 10,000 ordered units by that customer. The customer continues
to purchase further units and it is hoped more will be connected
during this year.
The Board anticipates that the Company will report a loss before
tax of approximately US$1.5m (FY 2015: loss of US$1.76m) after
inventory write-downs of US$450,000, but before provisions referred
to below. The preliminary results announcement is expected to be
released by 31 March 2017.
The anticipated loss before tax is before any additional
provisions which may be made in respect of receivables. In
addition, the Board anticipates that it will shorten the
amortisation period in respect of research and development costs to
more properly reflect the speed of technology changes, resulting in
a higher charge than would otherwise be the case.
Although the 2017 financial year is at a relatively early stage,
the Board expects that the results for 2017 will show an
improvement on those for 2016 based on the remedial actions
mentioned above regarding Watchlock and the good level of new
customer enquiries now being processed.
-ends-
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information, please contact:
Starcom Plc
Michael Rosenberg, Chairman 07785 727 595
Avi Hartmann, CEO +972 5430 70103
+972 3619 9901
Northland Capital Partners Limited (Nominated Adviser and Broker) 020 3861 6625
Edward Hutton / David Hignell (Corporate Finance)
John Howes (Sales and Broking)
Peterhouse Corporate Finance (Joint Broker) 020 7469 0930
Lucy Williams / Charles Goodfellow / Eran Zucker
Leander PR (Financial PR) 020 7520 9267
Christian Taylor-Wilkinson 07795 168 157
This information is provided by RNS
The company news service from the London Stock Exchange
END
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