TIDMPTRO
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) +44 (0)20 7397 8900
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
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