Telit Communications ends year at top end of forecasts
By Josh White
Date: Tuesday 15 Jan 2019
(Sharecast News) - Internet of things (IoT) technology company Telit Communications updated the market on its trading for the year ended 31 December, as well as the proposed sale of its automotive division, on Tuesday.
The AIM-traded firm said its revenue was expected to be at the top end of previous guidance at approximately $427m, representing revenue growth of 14%, with cloud and connectivity revenues up by more than 20% to $33.5m.
It said it delivered a positive "profit in cash" for the second half, with adjusted EBITDA for the full year expected to be in line with previous guidance at between $30m and $35m.
Net debt as at 31 December was approximately $34.5m, widening from $30.2m year-on-year.
Telit also noted that TUS International, the purchaser of its automotive division, had published details regarding a placing and subscription for the purposes of financing the transaction on 14 January.
Further, TUS sent to its shareholders a circular on Tuesday in relation to the subscription by a connected investor.
Telit said te conditions for the completion of the transaction remained unchanged from its update on 11 December.
The timetable for the transaction remained that TUS shareholder approval was expected to be obtained on 29 January, and the transaction to complete by 31 January.
"Over the last few months, we have significantly strengthened the group's infrastructure and delivered double-digit revenue growth and improved profitability for the year just finished," said Telit executive chairman Paolo Dal Pino.
"The board has changed significantly during the course of the year and I believe that the strategic and governance leadership of the Group is now in place to deliver upon our true potential.
"We are seeing promise of growth across markets and expect to improve further our financial performance in 2019 - based on continued revenue growth, gross margin control and, where possible, improving upon the $10m of additional cost savings previously announced."
Telit said it expected to publish its results in March.
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