Escher Group Holdings PLC Trading Update (3806W)

TIDMESCH

RNS Number : 3806W

Escher Group Holdings PLC

14 November 2017

14 November 2017

Escher Group Holdings plc

Trading update

Escher Group Holdings plc (AIM: ESCH, "Escher" or "the Group"), a world leading provider of outsourced, point of service software for use in the worldwide postal, retail and financial industries, announces that the Group will not close the additional licence sales that it had expected in H2 2017 due to the postponement of major contracts.

As a result, Group revenues are now expected to be approximately US$18m for the year to 31 December 2017 with licence revenues, which have a high margin, materially lower than expectations.

The adjusted EBITDA*, excluding exceptional items, is expected to be approximately US$2.7m for the year to 31 December 2017. As at 31 December 2017, the Group expects to have a neutral net debt/cash position.

Escher continues to manage its fixed-cost base in order to remain profitable, even in the absence of major one-off licence sales. The 2017 exceptional restructuring costs incurred are expected to be similar to those in 2016 at US$0.3m.

Liam Church, Escher Chief Executive said:

"We are disappointed with the postponement of licence sales, which we had anticipated falling in 2017. The volatility in revenues and earnings caused by the timing of these licence sales remains a characteristic of our core Postal activity."

* Operating profit before, depreciation, amortisation, share-based payments and exceptional items.

Enquiries:

 
 Escher www.eschergroupholdings.com      [phone] 
 Liam Church, Chief Executive 
  Officer 
  Clem Garvey, Chief Financial 
  Officer 
  Fionnuala Higgins, Chief Commercial 
  Officer 
 
                                         [phone] 
 Panmure Gordon                           2500 
 Andrew Godber / Alina Vaskina, 
  Corporate Finance 
 Erik Anderson, Corporate Broking 
 
                                         [phone] 
 Instinctif Partners                      2077 
 Adrian Duffield / Chris Birt 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 14, 2017 02:01 ET (07:01 GMT)