Loqus Holdings plc - Full-Year Results

On 29 October, Loqus Holdings plc published its full-year results for the financial year ended 30 June 2013.

During the period under review, the Group reported a 10% drop in revenue to €3.4 million reflecting the change in the Group’s strategy of focusing more on software and system sales rather than hardware sales. Similarly, net operating expenses dropped by 16.1% to €3.4 million leading to an earnings before interest, tax, depreciation and amortisation (EBITDA) of €0.22 million compared to the marginal negative EBITDA in the previous financial year.

Depreciation and amortisation charges dropped by 20.8% to €0.47 million given that more intangibles are now fully-amortised. Moreover, amortisation is expected to remain low in the coming year as the Group has reduced its investment in generic research and development.

Meanwhile, net finance costs increased by 38.2% to €0.32 million due to an increase in amounts due on taxes and social security contributions.

Overall, the Loqus Group incurred a net loss of €0.58 million which is nonetheless lower than the net loss of €0.84 million incurred in the previous financial year.

During the period, net cash generated from operations also improved to €0.45 million compared to €0.28 million in the previous financial year. The results also indicate that given the improvement in the Group’s net cash position, Loqus did not utilise the temporary excess banking facilities. Furthermore, CEO Joe Fenech Conti stated that all bank facilities will be fully repaid by September 2014.

The Group’s focus for new business is mainly outside Europe. However, the Group has consolidated its traditional client base in the UK and Italy (where it generated a profit for the first time since its inception) and noted that as Europe starts to recover from its economic downturn, the Group shall be well placed to leverage its continued sales and marketing efforts in a number of areas including the sale of its Fleet Management IPR and business.

Download the Loqus Holdings plc Annual Report and Financial Statements – 30 June 2013