REG - Starcom PLC - Replacement: Trading Update <Origin Href="QuoteRef">STARS.L</Origin>

Star EnergyAnnouncement

23/01/2018 07:05

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RNS Number : 5915C
Starcom PLC
23 January 2018 
 
23 January 2018 
 
Starcom Plc 
 
("Starcom" or the "Company") 
 
The EBITDA comparative for 2016 as stated in the Trading Update released at
7:00 am on 18 January under RNS 1980C has been amended from $612,000 loss to
$802,000 loss (after adjusting for inventory writedown). 
 
All other details remain unchanged. 
 
The full amended text is shown below. 
 
18 January 2018 
 
Starcom Plc 
 
("Starcom" or the "Company") 
 
Trading Update 
 
Starcom (AIM: STAR), which specialises in the development of wireless
solutions for the remote tracking, monitoring and protection of a variety of
assets, is pleased to provide an update in respect of the results for the year
ended 31 December 2017, which are subject to final audit. 
 
The Board expects turnover for the year ended 31 December 2017 of not less
than $5.5m (2016: $5.1m) and that the gross margin will exceed 41% (2016:
28%). EBITDA is expected to show a positive result of not less than $500,000
(2016: $802,000 loss (after adjusting for inventory writedown)). Total
operating expenses in 2017 are expected to be 31% lower than in 2016 and, as a
result, it is anticipated that the consolidated net profit after tax will show
a breakeven position or a small loss (2016: loss of $2m). 
 
The Board notes that the mix of sales in 2017 has shown a good progression in
the sales of non-Helios products such as the Tetis, Kylos and Watchlock. 
These are more specialised products and therefore command higher gross margins
than the standard Helios products.  The demand for the non-Helios products at
these higher margins has continued into the first half of 2018. 
 
Discussions are ongoing concerning further orders during 2018 with the major
European Industrial group with whom the Company announced an initial contract
in September 2017 for 1,000 Kylos Air units (subsequently increased to 1,200
units). These units are expected to be delivered to the customer shortly. 
 
The agreement with CropX is also proceeding well and further orders have been
received for delivery in the first quarter of 2018. 
 
The Company has recently signed a three-year supply and support Tetis
agreement with WIMC Solutions Inc. ("WIMC"), a US-based provider of products
and services for real-time monitoring of international container movements.
WIMC founded 'whereismycargo.net' a website which provides online global
tracking of vessels and containers for its customers. An initial order of
1,000 units has already been received and this may be increased to around
20,000 units over the next three years. A further 1,000 units are expected to
be delivered in Q1 of this year. This agreement, if fully implemented and all
units are connected, has the potential value of approximately $4.5 million,
including SAS revenues, over three years. 
 
The tender process involving the UN project referred to last year included a
pilot scheme in Africa and in the USA.  This pilot was completed
satisfactorily at the end of December 2017 and all customer requirements have
been met. However, it is still uncertain as to when a final decision will be
made and there can be no assurance at this stage that Starcom's proposal will
be selected. 
 
The Company has a number of outstanding bank and commercial loans and is
reducing these on a monthly basis. Since the placing of shares in October
2017, a total of $175,000 has been repaid, including $55,000 to YA II PN, Ltd
("YA").The outstanding balance of $65,000 due to YA will be repaid in the near
future. Although the intention had been to repay this loan in full in the last
quarter of 2017, it was considered that it was in shareholders' interests that
customer demands for delivery of product should take priority at that time. 
 
The Company is experiencing one of its highest levels of orders for delivery
in the first half of the year. Although the 2018 financial year is at a
relatively early stage, based on the level of orders in hand and the level of
new business enquiries, the Board anticipates that revenues and margins in
2018 will continue to improve. 
 
The preliminary results announcement is expected to be released by the middle
of March 2018. 
 
-ends- 
 
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014. 
 
For further information, please contact: 
 
Starcom Plc 
 
Michael Rosenberg, Chairman                                                   
                   07785 727 595 
 
Avi Hartmann, CEO                                                             
                      +972 5447 35663 
 
Northland Capital Partners Limited (Nominated Adviser and Broker)      020
3861 6625 
 
Edward Hutton / David Hignell (Corporate Finance) 
 
John Howes (Sales and Broking) 
 
Peterhouse Corporate Finance (Joint Broker)                                   
       020 7469 0930 
 
Lucy Williams / Charles Goodfellow / Eran Zucker 
 
Leander PR (Financial PR)                                                     
                     07795 168 157 
 
Christian Taylor-Wilkinson 
 
This information is provided by RNS
The company news service from the London Stock Exchange