Loqus Holdings plc - Interim Results

Tuesday, February 24th, 2015

On 23 February, Loqus Holdings plc published its interim results covering the six months ended 31 December 2014.

Performance Overview

During the period under review, the Group reported a 7% increase in revenue to €1.8 million whilst costs declined by 4% to €1.6 million. This led to a 44% improvement in the Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) to €0.17 million. Nonetheless, after accounting for a depreciation and amortisation charge of €0.14 million as well as €0.14 million in finance costs, the Group still incurred a loss for the period of €0.12 million, 13.1% lower than the €0.14 million loss incurred in the previous comparable period.

In the report of the Directors it was noted that the tight cost controls and the success in new revenue sources have improved the profit to revenue ratios across all business units. This also translated into an increase in net cash flow from operating activities which in turn enabled the Group to increase its investment in research and development. Loqus Fleet, the Group’s subsidiary administering the fleet management business, successfully launched a number of new projects during the period under review whilst also renewing contracts with existing clients. Loqus has also recently been awarded a tender for the procurement and installation of traceability equipment for the Department of Fisheries and Aquaculture which continues to consolidate the Group’s dominance in the local market in the area of Vessel Monitoring Systems for the public sector.

Outlook

Looking ahead, the Directors explained that although an improvement in cash generation from operations was recorded, cash flow will continue to be a challenge. Nonetheless, it is noteworthy to highlight that the Group has managed to repay all of its bank facilities by August 2014.

Moving forward, the Group will highlight the performance of its Fleet Management business to allow the Group to attract and retain strategic investors and personnel. This requires continuous investments in its product offering. In this respect, the Group plans to merge its Fleet Management products and transfer them onto a cloud based and on open web systems to provide low cost, high quality solutions.

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Loqus Holdings plc – Half-Year Report for the six months ended 31 December 2014

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