REG - Datalex PLC Datalex PLC - DLE - Publication of 2022 Annual Report & Notice of AGM

DatalexAnnouncement

04/05/2023 07:00

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RNS Number : 3430Y  Datalex PLC  04 May 2023

Datalex plc

 

Publication of 2022 Annual Report and Notice of Annual General Meeting

 

FY2022: a year of meaningful progress despite the challenges faced in one of
our main markets.

 

Dublin, Ireland 04 May 2023: Datalex plc ("Datalex", the "Company" or the
"Group") (Euronext Growth Dublin: DLE), a market leader in digital airline
retail products and software solutions, announces that it has today published
its Annual Report and Financial Statements for the year ended 31 December 2022
and Notice of Annual General Meeting ("AGM").

 

 Key Financial / Performance highlights

 

·    2022 revenue was US$23.5 million representing an 8% decrease when
compared to 2021. Excluding a US$2 million once-off revenue item in 2021, 2022
revenues are in line with the prior year.

·    The Group was materially impacted by Covid restrictions on its
Chinese customers throughout 2022 resulting in a decline in platform revenues
of 17% in 2022 when compared to 2021. Since restrictions were lifted in the
Chinese market in January 2023, the Group is seeing a material increase in
demand in China with March transaction volumes reaching 42% of 2019 figures.

·    Services revenues increased by US$2.8 million representing a 33%
increase versus 2021 due to a combination of new customer onboarding activity
from recent wins and projects that recommenced post-Covid.

·    Total operating costs excluding exceptional items increased by 28% to
US$35.0 million (2021: US$27.4 million), primarily due to increased costs
incurred onboarding new customers. 2021 costs were also net of a once-off
supplier discount of US$1.5 million.

·    2022 adjusted EBITDA declined to a loss of US$5.3 million from
adjusted EBITDA earnings of US$2.4 million in 2021.

·    The Group incurred a loss after tax for the year of US$11.5 million
compared to a loss after tax in 2021 of US$4.9 million.

·    Our cash balance at year end was US$6.5 million, down from US$8.3
million at the end of 2021. A net cash outflow from operations of US$3.4
million and outflows to fund capitalised product development of US$2.4 million
was offset in part by proceeds of borrowings of US$5 million, contributing to
the year-on-year decrease in cash.

 

Significant Corporate Developments

 

·    Partnership implementations with Virgin Australia, announced in
December 2021 and easyJet, announced September 2022, are progressing as
expected.

·    The Group has recently renewed its relationship with key existing
customers, JetBlue, Air China and Air Transat, in tenure of between three and
five years and all changed to SaaS based license and transaction terms.  The
Group has very recently signed a new contract with LATAM for Datalex Dynamic
Shopping and Pricing.

·    The Group has seen a strong recovery in airline activity across all
geographies in the first three months of 2023, with aggregated booking volumes
for our global customer base (excluding China) having increased by 31% in Q1
2023 versus Q1 2022.

·    On 27 February 2023, Scandinavian Airlines (SAS) cancelled their
contract with the Group via notification of rejection under Chapter 11
process.

·    Investment in product development has continued. Datalex Pricing AI,
launched in May 2022, is an entry into a new business area for Datalex within
airline retail and expands the Group's total addressable market.

·    Currently the Group has drawn down €9m of the €10m available
under the existing debt facility. Any amounts drawn under this facility are
required to be repaid by 31 December 2024. As previously announced, in the
context of the Company's strategic development, in particular the expected
growth from recent new customer wins and other opportunities, the Board has
engaged its financial advisers to explore further fundraising options to
secure capital to repay the debt facility and support the expansion of the
business as it returns to positive cashflow generation and further builds out
its global customer base.

·    Datalex will host a Capital Markets event for analysts and investors
on 10 May 2023 in London. The event will commence at 16.00 in Tower 42, 25 Old
Broad St, London EC2N 1HQ, United Kingdom. Please register your attendance
through Goodbody below: madeleine.bruce@goodbody.co.uk
(mailto:madeleine.bruce@goodbody.co.uk)

Commenting on today's announcement, Sean Corkery, CEO of Datalex, said:

 

"While we started out 2022 optimistic that the global aviation industry would
rebound quickly, international travel restrictions were slower to unwind.
Unfortunately, these restrictions continued throughout 2022 in China, where
much-anticipated recovery failed to materialise during the year.

 

Thankfully, we are confident that this turbulent period is now firmly behind
us and are encouraged by a material increase in demand we have observed in
China and across our global customer base in the first three months of this
year.

 

Over the past eight months we have welcomed leading European airline easyJet
as a new customer and announced renewed and updated contracts with our
partners JetBlue, Air China and Air Transat. This demonstrates the market
confidence in our products and solutions and positions Datalex to capture
future growth opportunities as the airline industry recovers.

 

With this growth brings new opportunities to drive digital retail excellence
at scale. We look forward to working with our airline customers to continue
supporting them on their growth trajectory and power next generation airline
retailing through our innovative technology solutions."

 

2022 results presentation

Management will review the 2022 results on a conference call at 9.30am Dublin
time today. A copy of the presentation will be available on our website at
investors.datalex.com (https://investors.datalex.com/) and the call details
are provided below:

 

Join on your computer or mobile app:

Click here to join the meeting
(https://teams.microsoft.com/l/meetup-join/19%3ameeting_ZDA2MTRmYTktMmUzMC00ZTg2LWJkYmYtMDRkNTZlNjg4ZmQ5%40thread.v2/0?context=%7b%22Tid%22%3a%220cd40c17-13bd-4510-b1cd-d0c94376ed0a%22%2c%22Oid%22%3a%22851dc360-9f1d-48e8-9db3-57b532059a14%22%7d)

Meeting ID: 346 836 049 199

Passcode: v8ndRu

 

Or call in (audio only)

+353 1 566 1167,,937950618#

Phone Conference ID: 937 950 618#

Find a local number
(https://dialin.teams.microsoft.com/01e981bf-6dce-4661-a5d4-252c3898c2f0?id=937950618)

 

Annual Report

 

Datalex's 2022 Annual Report and Financial Statements are available to view on
www.datalex.com/investors (http://www.datalex.com/investors) and will shortly
be available for inspection
at http://www.rns-pdf.londonstockexchange.com/rns/3430Y_1-2023-5-3.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3430Y_1-2023-5-3.pdf)

 

AGM

 

The Company's AGM will be held on Thursday 22(nd) June 2023 at 11.00am Dublin
time at Block V, Eastpoint Business Park, Dublin 3 D03 H704, Ireland.

 

The Notice of AGM contains details of all resolutions to be proposed at the
AGM. Any relevant updates regarding the AGM, including any changes to the
arrangements outlined in the Notice will be announced via a Regulatory
Information Service.

 

The Notice of AGM and a Form of Proxy will shortly be available on the
Company's website and may be viewed and downloaded online at
www.datalex.com/investors (http://www.datalex.com/investors) . Hard copies of
the Notice of AGM will be posted to shareholders who have elected to receive
them. Copies of the notice will be submitted to Euronext Dublin where they
will be available for inspection.

 

Contact information

Investor Enquiries

Neil McLoughlin, Datalex plc

+353 1 806 3500

investor.relations@datalex.com (mailto:investor.relations@datalex.com)

 

Media Enquiries

Eavan Gannon, Powerscourt

+353 87 236 5973

Datalex@powerscourt-group.com (mailto:Datalex@powerscourt-group.com)

 

About Datalex

Datalex's purpose is to transform airline retail. Datalex is a market leader
in airline retail technology, offering unique products that enable airlines to
drive revenue and profit as digital retailers. Datalex has a strong track
record of delivering digital retail transformation for progressive airline
brands worldwide.

 

The Group is headquartered in Dublin, Ireland, and maintains offices
across Europe, the USA, China and Australia. In 2023, Datalex was awarded
the 'Great Place to Work®' and 'Best Workplaces in Tech™' certifications.
Datalex plc is a publicly listed company, on Euronext Growth, Dublin. Learn
more at www.datalex.com (http://www.datalex.com/)

 

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