Loqus Holdings plc - Full-Year Results

On 1 February, Loqus Holdings plc published its financial results for the year ended 30 June 2010. During the period under review the Group generated €4.4 million in revenue representing a 40% increase over the previous financial year following the new tenders awarded including the LEMIS contract for the Government Property Division and the contract by MITA for the provision of online e-Forms and Related Services. Costs increased in line with the growth in revenue particularly due to up-front costs related to these tenders. Nonetheless the Group reported a significant improvement in earnings before interest, tax, depreciation and amortisation (EBITDA) to just over €1 million from €0.26 million in the preceding twelve months. Depreciation and amortisation also increased by 17% to €0.83 million due to new investments in software during the year under review.

The Loqus Group also incurred higher finance costs of €162,000 as a result of additional financing required and a moratorium period on the Group’s repayments granted by its bankers. The company’s auditors Ernst & Young highlighted that the Group is in breach of bank covenants thus resulting in all amounts outstanding to the bank being immediately due and payable. In this respect, the auditors emphasised that the Group’s ability to continue to operate in the foreseeable future is entirely dependent on the bank’s support and the Group’s ability to improve liquidity.

Overall, Loqus Holdings registered a marginal profit of €47,701 which represents a significant improvement from the loss of €566,793 registered in the previous twelve months.

On the balance sheet side, the Group’s current assets are €2 million below the level of current liabilities as all bank facilities are due for payment following breach of bank covenants. As such, the Group’s CEO explained that cash management will be a priority for the Group during the current year in order to meet its obligations on time.

The CEO stated that the period from July to December 2010 was even tougher than the last financial year. Moreover Mr Fenech Conti explained that many challenges remain, particularly discharging all past liabilities (incurred prior to the group’s restructuring) and delivering projects on time and within budget. Nonetheless the CEO stated that the outlook remains positive.

No dividend was recommended by the Directors.

Downlod a copy of the Loqus Holdings plc – Annual Report as at 30 June 2010