Touchstar PLC Trading Statement (2250X)
18 Diciembre 2019 - 1:00AM
UK Regulatory
TIDMTST
RNS Number : 2250X
Touchstar PLC
18 December 2019
Touchstar plc
(the "Company", "Touchstar" or the "Group")
Trading Update
The Board of Touchstar plc provides the following update on
trading and outlook:
FULL YEAR OUTLOOK
Total group revenue is expected to be around GBP7million, which
is below where we had hoped but represents growth from continuing
businesses, excluding the recently disposed On-Board division, of
approximately 10% year on year.
Two factors have negatively impacted our performance. Firstly,
there has been a general trend during this final quarter of the
year of customers not committing to placing orders due to the
political uncertainty in the UK. Secondly there was a negative
factor specific to our business. Whilst we received several large
orders, including one which was highly significant, the race for
delivery prior to the year-end has been impacted by extended lead
times for obtaining stock. Thus, delivery of these items will now
be completed in the first quarter 2020.
These factors will have a knock-on effect to profitability in
the current financial year. At both an after tax and pre-tax level
performance is expected to be below prior expectations.
Set against this, cash generation in the second half of 2019 has
been positive, with the group moving into a net cash position.
As a result of these stock delivery issues, the order bank for
2020 is exceedingly healthy at around GBP800k (compared to GBP254k
at 31(st) December 2018).
As regards our underlying operational performance, the newly
developed products continued to grow and are expected to show
strong revenue growth on 2018 - Podstar Haulage around 86% ,
Podstar Fuel around 13% , and Access Control around 10% - we expect
these trends to continue. With the level of political distraction
now reduced, it is probable that the trading in our most
economically sensitive part of the business, namely Logistics, will
stabilise and recover, rather than record a 20% decline as is
expected this year (as customers deferred their investment
decisions).
The recent disposal of our On-Board division, consequential cost
savings, a strong order book and positive reactions to our new
products auger well for 2020.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.
For further information, please contact:
Touchstar plc Ian Martin 0161 874 5050
Mark Hardy 0161 874 5050
Mike Coe/ Chris 0117 945
WH Ireland - Nominated Adviser Savidge 3472
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END
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