Released: 28/02/2008
RNS Number:9153O
Spiritel PLC
28 February 2008
28 February 2008
SPIRITEL PLC
("Spiritel" or "the Company")
TRADING UPDATE
Spiritel plc, (AIM:STP), the business communications service provider, today
issues an update on current trading for the year to 30 April 2008.
-Full year revenue expected to be not less than £15.8m (2007: £13.6m)
-Second half underlying operating profitability more than double first
half performance
The Company is pleased to report that revenue for the second half of the current
year to 30 April 2008 is expected to be over 30% ahead of the first half, and
not less than £15.8m (2007:£13.6m) for the full year. Second half underlying
operating profitability is forecast to be substantially ahead of previous
management expectations and at least double the level of earnings recently
reported in the interim results to 31 October 2007.
The recent improvement in financial performance build further upon the return to
underlying operating profitability reported in the interim statement and is the
result of a strong third quarter performance which is expected to continue to
the end of the financial year and beyond. The increased revenue reflects the
fact that over the past nine months Spiritel has won a number of new contracts
and recorded several successes in cross selling its expanded range of products
and services to the enlarged customer base.
The Company is also pleased to report that tdotcom, acquired in October 2007, is
outperforming initial expectations. Its rapid integration into Spiritel Business
has led to the delivery of significant synergies, including cost savings and
substantial revenue and margin increases. Forecast revenue and profitability
from tdotcom, which has now been fully rebranded as Spiritel Business, is
substantially ahead of pre-acquisition performance.
The new management team has worked consistently during this financial year to
build on its successful track record of acquisitions to create a stronger,
broader base from which to deliver value to shareholders and new products and
services to the growing customer base.
This update on improved trading performance follows the recent announcement on
balance sheet restructure. Subject to EGM, the proposed conversion rights for
Penta Capital's loan facilities and preference shares will save the Company an
annual interest charge of £800,000 which will result in substantially improved
profit before tax performance going forward.
Commenting on the update, Alastair Mills, CEO said: "Our interim results
demonstrated the progress that the Company has achieved in its turnaround
process, both operationally and financially. Our success in delivering a return
to operating profitability and increased earnings visibility has been
significantly advanced by the earnings enhancing acquisitions which have been
fully integrated into the Group structure. This is now being evidenced by the
enhanced performance during the second half of the year"
He added: "Our successful and proven business model is now delivering tangible
improvements to the Company which will ensure long term shareholder value. We
expect trading in the fourth quarter to build on our strong first nine months
and bring the financial year to a very encouraging conclusion."
For further information please visit www.spiritelplc.com or contact:
Spiritel plc Tavistock Communications Daniel Stewart & Co.
Alastair Mills Simon Hudson Simon Leathers
Chief Executive Clemmie Carr Stewart Dick
Tel: 020 7160 0100 Tel: 020 7920 3150 Tel. 020 7776 6550
Notes to Editors
Spiritel is a business communications group which seeks to take advantage of the
opportunities created by rapidly changing telecoms markets in the UK as the
migration to Internet Protocol (IP) based services accelerates. The Group is a
consolidator of the highly fragmented UK telecoms reseller market and aims to
build a substantial customer base and scale through selective acquisitions. We
are organised into two divisions, Spiritel Technologies - focused on our
infrastructure and IP products and services - and Spiritel Business, which
provides our customer services.
Today, the Group offers a broad range of voice and data communications products
and services to a customer base of small and medium sized enterprises and an
increasing number of larger national organisations. We are a leader in the
provision of new, but proven, Voice over IP (VoIP) solutions that are firmly
based on the old-fashioned service values, which run throughout the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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