PTRO Pelatro Plc

TIDMPTRO

RNS Number : 2748G

Pelatro PLC

18 July 2023

18 July 2023

Pelatro Plc

("Pelatro" or the "Company")

Trading Update

Pelatro announces that it has recently been informed by a key customer, owing $550K, that it will no longer meet a previously agreed payment deadline of July 2023. This delay in payment, together with routine half-year procedures, prompted the Board to undertake a wider review of its outstanding receivables.

Following the review, Pelatro confirms that it is experiencing unusual delays in collection of receivables from four specific customers, together amounting to c.$1.1m (of total receivables of $4.2m). The Company is in active and constructive discussions with the four customers and expects a positive resolution.

The delays are partly due to the countries in which the customers are based, being Nepal, Myanmar and Bangladesh, where the governments are yet to provide approval to the customers to make the contractual payments. This is because it involves payments to a foreign entity, which is government regulated and requires prior authorisation in these countries. In two instances there are also recent disputes over the payment due to the Company, where two customers, based in Nepal and Myanmar, are unwilling to pay for the services and products received. This impacts $375K of the total $1.1m. The Board remains confident of collecting those amounts that are awaiting government approval in the respective countries but has currently no certainty as to the timing of the transfer of funds and is mindful of the impact on working capital of these delays continuing.

The Company had cash of $0.7m as at 30 June 2023. The Board expects to collect c$2.6m from other customers between July and September 2023 but will, based on current assumptions and management forecasts, require additional external funding in the final quarter of the financial year, dependent on the extent that the outstanding receivables are collected and over what timeframe. Consequently, the Board is prudently exploring financing and funding options should this be necessary.

The Board will update shareholders as appropriate.

For further information contact:

 
 Pelatro Plc 
 Subash Menon, Managing Director                   c/o finnCap 
 Nic Hellyer, CFO 
 finnCap Limited (Nominated Adviser and 
  Broker)                                  +44 (0)20 7220 0500 
 Carl Holmes/Milesh Hindocha (Corporate 
  Finance) 
 
 

This announcement is released by Pelatro Plc and, prior to publication, the information contained herein was deemed to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014. Such information is disclosed in accordance with the Company's obligations under Article 17 of MAR. The person who arranged for the release of this announcement on behalf of Pelatro Plc was Nic Hellyer, CFO.

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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