Trading Statement (6563F)

TIDMTEL

RNS Number : 6563F

Teliti International Ltd

19 June 2012

19 June 2012

Teliti International Ltd.

("Teliti" or the "Company")

Trading Update

Teliti International Ltd (AIM: TEL), the datacentre and IT business, provides a trading update for the six months ended 30 March 2012, ahead of its interim results announcement to be made on 29 June 2012.

On 30 January 2012, the Company announced that the opening of the datacentre (the "Datacentre") would be delayed until July 2012 due to a delay in the delivery and receipt of key equipment (being the generator sets from Europe and chiller equipment). However, delayed payments by the Company's debt provider to the Company's contractors will mean that the Datacentre will not be operational from July 2012 as previously indicated. The Company still expects the Datacentre superstructure to be completed in July, but the initial 45,000 sq ft is not anticipated to be operational until the first quarter of calendar year 2013. As a result, Teliti Datacentres will not generate any significant revenues in the year to 30 September 2012. The Company has currently drawndown RM75.5m of the RM111m debt and is in discussions regarding the release of the remaining funds, which are required to bring the Datacentre into operation. The Board is confident that the matter will be resolved in the near future.

Marketing of the Datacentre has continued in Malaysia and through Teliti Datacentres' regional marketing office in Singapore (covering Singapore and Hong Kong), and interest in the facility remains strong. As of 15 June 2012, Teliti was in advanced discussions to sign rental agreements for approximately 20,000 sq ft, or c.44% of the initial 45,000 sq ft of net lettable area. In addition, the Company is continuing to progress discussions with its partners for the provision of cloud computing services and expects this offering to be ready for when the Datacentre is opened.

The delay in the completion of the Datacentre will have an adverse material impact on the Company's results for the full year 2012. Despite the Company expecting overall growth for the full year 2012, the pre-tax profits will now be less than half market expectations. This is due to the loss of any significant revenue contribution from Teliti Datacentres for the year, although this is partially offset by the reduced interest charges resulting from the delay in drawing down on the Company's banking facility.

Further details will be provided in the Company's interim statements.

Enquiries

 
 Teliti International Ltd 
 Hj Mohamed Nasir Abdul Majid, Chief 
  Executive Officer 
  Rosmida Din, Chief Financial Officer    [phone] 
 
 Daniel Stewart and Company plc 
 Antony Legge, James Felix                [phone] 
 
 Luther Pendragon 
 Harry Chathli, Claire Norbury            [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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