Loqus Holdings plc - Interim Directors’ Statement

Thursday, November 29th, 2012

On 29 November, Loqus Holdings plc updated the market on its progress in view of the late filing of the Audited Financial Statements covering the financial year ended 30 June 2012. The Directors explained that these delays in publishing the required announcements is due to a knock-on effect from the late submission of the audited financial statements for the year ended 30 June 2011. Moreover, the Group is also seeking shareholders’ approval for a change in auditors which can only be achieved during the Annual General Meeting scheduled to be held on 3 December. The Directors are proposing that new auditors are appointed at a cost which is more commensurate to the size of the Group. If approved by shareholders, the new auditors will commence the audit process for the twelve months ended 30 June 2012 in January 2013.

In view of this delay, the Listing Authority has suspended trading in the share of Loqus Holdings and the suspension will only be lifted when the Audited Financial statements for the year ended 30 June 2012 are published.

The announcement also revealed some headline unaudited figures for the year ended 30 June 2012. During the last financial year, revenue dropped by 8.3% to €3.76 million mainly due to a decline in hardware sales. However, the Group managed to achieve a break-even status in terms of earnings before interest, tax, depreciation and amortisation (EBITDA). In fact, EBITDA for the period under review amounted to €34,753 compared to the negative figure of €353,508 that was registered in the previous financial year. The difference is mainly due to bad debt provisions on customer accounts reported for the financial year ended 30 June 2011 which were not repeated during the period under review. Although Loqus achieved a break-even position on an operational level, the Group is still in an overall loss making situation but the Directors believe that the Group is moving in the right direction and therefore they are aiming for a more sustained recovery by June 2013.

In fact, the figures for the first quarter (July to September) of the current financial year ending 30 June 2013 show with an EBITDA of €77,312 compared to the negative figure of €3,263 registered in the previous comparable quarter mainly reflecting the decrease in personnel expenses on non-performing assets which offset the 30.6% drop in revenue. Furthermore, the Directors revealed that the government projects are on target to be completed before the end of June 2013.

In the meantime, the Group’s bankers continued to support it through temporary excess facilities which the Group has not needed to utilise for the last 3 months. Moreover, the Group continues to focus on discussions with potential partners in connection with a potential sale (in full or part) of the fleet management arm of the Group.

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