REG - Cordel Group PLC - 3rd Quarter Trading Update

CordelAnnouncement

11/04/2022 07:00

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RNS Number : 8805H  Cordel Group PLC  11 April 2022

11 April 2022

Cordel Group PLC ("Cordel" or the "Company" or the "Group")

Third Quarter Trading Update

Cordel Group PLC (AIM: MNO), the Artificial Intelligence platform for
transport corridor analytics, announces unaudited third quarter results for
the three months ending 31 March 2022.

 GBP 000's                3 months to 31/03/22                                              3 months to 31/03/21                                               % Change                          % Change constant currency
 Total revenue            629                                                               294                                                                114%                              115%
 Cost of sales            168                                                               294                                                                32%                               34%
 Total expenses           665                                                               691                                                                -4%                               -2%
 Other income             0                                                                 73                                                                 -100%                             -100%
 EBITDA                   -204                                                              -451                                                               55%                               57%

 

 GBP 000's                9 months to 31/03/22                                              9 months to 31/03/21                                              % Change                          % Change constant currency
 Total revenue            1,258                                                             1,032                                                             22%                               24%
 Cost of sales            497                                                               378                                                               31%                               35%
 Total expenses           2,229                                                             1,970                                                             13%                               16%
 Other income             0                                                                 182                                                               -100%                             -100%
 EBITDA                   -1,468                                                            -1,300                                                            -13%                              -15%

 

*Constant currency reflects the results had the underlying transactional
currencies been constant in both periods reported.

 

Key Financial Points in relation to Year-to-date Performance

·    Total revenue up 22% in reported currency and 24% at constant
currency.

·    Total expenses increased by 13% (16% in constant currency).
Additional software and development engineers were the main items increasing
personnel costs in FY22.

·    Cash balance and receivables at 31/03/22 was £852,098

 

Key Business Points

·    Significant growth in qualified pipeline opportunities with large
initial deal values

·    Network Rail contract announced in December 2021, milestone 1
delivered in January 2022, Milestone 2 scheduled for April 2022 on track.

·    Class 1 Railroad in the USA pilot successfully delivered 9,000 miles
of track inspection data (4,500 miles per month) resulting in ongoing
negotiations.

·    Cordel partnership agreements and commercial projects in discussion
with significant UK rail companies.

 

Nick Smith, CEO of Cordel, commented:

"Our third quarter saw a return to the growth trajectory anticipated in our
plan, as revenue from major contracts began to flow.  We have confidence in a
continued strong performance during the remainder of the year and beyond."

Ian Buddery, Chairman of Cordel, commented:

"Mike Turner commenced as Chief Revenue Officer in March, delivering
significant improvements in forecasting and major account management. This has
been of great benefit as our backlog of major contracts and partnerships
begins to deliver growth. We look forward with confidence and continue to
target a cash positive performance in the fourth quarter."

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014, as implemented into UK Law. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

 

Enquiries:

 Cordel Group plc

 Ian Buddery, Chairman                        c/o Arden Partners

 Nick Smith, CEO                              c/o Arden Partners
 Arden Partners (Broker / Nominated Adviser)  +44 (0)20 7614 5900

 Ruari McGirr / Richard Johnson
 SEC Newgate (Financial PR)                   +44 (0) 7540 106366

 Robin Tozer / Bob Huxford / George Esmond

 

 

About Cordel

Cordel offers a patented cloud-based platform for master data management and
business analytics, together with specialist hardware and software for
capturing, analysing and reporting on large datasets within the transport
sector, employing sophisticated artificial intelligence algorithms.

Further information on the Company is available at: www.Cordel.com
(http://www.maestrano.com)

 

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