Loqus Holdings plc - Interim Results

On 24 February 2021, Loqus Holding plc published its interim report covering the six months ended 31 December 2020.

Performance Overview

During the period under review, Loqus registered a 41.6% increase in revenue to a new record of €3.67 million, primarily derived from its fleet management business which benefited from increased online sales as the Company launched new products and secured new clients. Moreover, the recent acquisition of Simno Software Services Limited contributed an additional €0.46 million in revenue. The company noted that total fleet management revenue now contributes 73% of total revenue.

Meanwhile, operational costs only increased by 17.4% to €2.35 million when compared to the same period in 2019.

As a result, EBITDA more than doubled from €0.59 million to €1.32 million. Similarly, profit before tax also improved considerably to €0.64 million during the period under review compared to just over €23,000 during the six months ended 31 December 2019. After accounting for tax, the Group’s net profit for the period under review amounted to €0.61 million which translates into an earnings per share of €0.019 and representing an improvement from the break-even position reported for the previous comparable period.

Given the improvement in profitability, the Group’s equity position increased by 23.8% to €3.16 million which translates into a net asset value of €0.099 per share, up from €0.08 as at 30 June 2020.

Outlook

Going forward, the Group is expecting its financial performance for the financial year ending 30 June 2021 to be significantly better than the results of the prior comparable period, although it expects the increase in the second half of its financial year to be significantly less than the increase experiences in the first half as the sales surge registered during the period are not expected to be repeated between January and June 2021.

Moreover, the Directors explained that management is actively preparing a restructuring and financing plan that will be presented to the Board of Directors and shareholders over the coming months.  Management noted that this plan will aim to provide the financing that will allow Loqus to achieve its potential through research and development of new and existing products, wider international market and best of breed business continuity. Moreover, this plan will also aim to address existing shareholders’ loans and a full restructuring of Loqus’ balance sheet which will allow the company to remove accumulated losses and provide a better reflection of its operations.

The Directors also noted that whilst they remain cognizant of the fact that much more needs to be done, they are confident that the Company is progressing in the right direction. Therefore Loqus remains on track to fulfil its ambitious targets by making continuous improvements throughout its business in order to achieve stability, profitability and growth.

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Loqus Holdings plc – Interim Report covering the six months ended 31 December 2020