Starcom PLC Trading Update (8793P)
22 Outubro 2021 - 3:00AM
UK Regulatory
TIDMSTAR
RNS Number : 8793P
Starcom PLC
22 October 2021
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended.
22 October 2021
Starcom PLC
("Starcom" or the "Company")
Trading Update
The Board of Starcom (AIM: STAR), which specialises in the
development of wireless, Internet-of-Things (IoT) based solutions
for the remote tracking, monitoring and protection of a variety of
assets, is pleased to provide an update on trading.
As stated in the interim results announced on 27 August 2021,
there are strong signals that business is starting to revive and
the Company has a strong pipeline of potential new business. In
this regard, the Board of Starcom can report that negotiations for
potential new contracts are progressing and the Company is in
advanced stage discussions for a number of potentially substantial
projects concerning the supply of Starcom's various devices for the
tracking and monitoring of containers and related items. Should
these be successfully concluded they could provide significant
revenues over the next few years, including SaaS revenues. There
can be no certainty that these negotiations will lead to final
contracts or if they do, what the final terms and value will be.
However, certain potential clients have indicated their desire to
reach an agreement with Starcom for its technology and the Board is
hopeful to conclude one or more contracts before the end of this
year. This includes discussions with potential customers in South
America and the USA, including one that the Board considers to be
one of the major companies in the field of tracking and monitoring
containers. The timing for completion of any of these negotiations
cannot be certain at this stage and the Company will provide
further updates as soon as appropriate.
Separately, the Board has been undertaking a strategic review of
the Company's position in its markets together with professional
advisers. As a result, it is now intended to commence a rebranding
of Starcom's products and, now that Covid restrictions on travel
are less onerous, the Company will focus on increasing its global
marketing plans and seek to take advantage of the major increases
in the costs to companies of shipping with containers that, the
Director's believe, should improve the demand for Starcom's product
range. The Board is also giving consideration to a possible change
of name of the Company to reflect the new branding image which is
being developed.
Trading in the second half of the year is still expected to show
an improvement on the first half, but much depends on the
finalisation and timing of signature of the contracts referred to
above. T he Company has maintained a key focus on cash in light of
the challenges faced in managing inventory levels and dealing with
the global shortage of components needed to make products. The
worsening supply chain issues facing multiple sectors and
businesses of all sizes have been well publicised and,
unfortunately, Starcom has not been immune to these challenges.
These issues include material increases in freight costs and
shipping timeframes, as well as increasing component costs and
reduced availability. Some orders for customers, existing and
prospective, have been delayed as a result, particularly as
suppliers now often require full payment in advance. This
inevitably impacts cash flow projections and the Company is working
hard to mitigate this as best as possible, including ensuring a
sufficient working capital buffer, and the Company is proposing to
raise up to GBP450,000 in an equity subscription which it expects
to be able to conclude shortly.
Contacts:
Starcom Plc
Michael Rosenberg, Chairman 07785 727595
Avi Hartmann, CEO +972 5477 35663
Allenby Capital Limited (AIM Nominated Adviser
and Joint Broker)
Jeremy Porter/Piers Shimwell 020 3328 5656
Peterhouse Capital Limited (Joint Broker)
Lucy Williams/Charles Goodfellow/Eran Zucker 020 7469 0930
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END
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