REG - Pelatro PLC - Trading Update

PelatroAnnouncement

18/07/2023 07:00

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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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