Loqus Holdings plc - Half-Year Results

On 10 May, Loqus Holdings plc published its half-year results covering the six months ended 31 December 2010. The Group registered a 6.8% rise in turnover to €1.75 million but still reported a 59.4% drop in earnings before interest, tax, depreciation and amortisation (EBITDA) to €103,687 and a loss before tax of €430,524 compared to the pre-tax loss of €256,238 reported with respect to the six months ended 31 December 2009. This decline in performance was due to the change in the Group’s focus from products to projects which resulted in a decrease in the amount of capitalised expenditure for the period under review. Moreover the Group incurred a 36.2% rise in wages to just over €1 million together with increases in other operating expenses including ‘other administrative expenses’ (+17.5%) and ‘Travelling and accommodation expenses’ (+27.3%).

In the Half-Year report, the Directors again indicated that the Group is struggling to maintain a positive cash flow position. Nonetheless, the Directors are confident that with the support of its bank it intends to progress with its business strategies.

The Directors also pointed out that the Group has managed to attract over €4 million worth of projects including the significant Fisheries tender and the important eForms project for the Maltese Government. During the period under review, the Group signed three new international clients: (i) Geopost for RouteIT, (ii) Scania for DispatchIT and (iii) Artoni which signed a contract for a minimum of €2.5 million. The Group also submitted its first claim for the use of the European Regional Development Funds which was granted last year.

Moreover, during the period under review, the Loqus Group acquired the remaining 45% shareholding in its Italian subsidiary, Loqus Italia srl and acquired the business of Alemea Technology in Italy thus increasing its staff complement by three new personnel and an office in Capri with a number of fleet management clients in Italy. Furthermore, the Directors explained that the Group suspended its operations in Libya due to the political turmoil.

Despite the new signings, the Directors envisage a challenging second half of their financial year ending 30 June 2011. Nonetheless, the Group remains focused on aggressively pursuing opportunities and adapting to challenges as it continues to strengthen its long-term viability while expanding its market presence.

Download a copy of the Loqus Holdings plc Half-Year Report for the six months ended 31 December 2010.